Annual Results 2025

RNS Number : 4933J

Great Portland Estates PLC

21 May 2025

Executing our growth strategy

Great Portland Estates plc is pleased to announce results for the Group for the year ended 31 March 2025¹, with highlights including:

· Successful deployment of rights proceeds; £325 million allocated

· Strong operational performance, record investment leasing at 10.6% premium to March 2024 ERV

· Valuation +3.6%² (inc. Fully Managed +12.8%); EPRA NTA +4.4%³ ; TAR +6.0%³

· Rental values up by 5.0%², portfolio ERV growth guidance upgraded to 4.0% to 7.0% for FY26

· Developments delivering premium space into supply drought; c.£220m to c.£580m surplus to come

· Balance sheet strength maintained, EPRA LTV 30.8%, cash and undrawn facilities £376 million

· Significant income & value growth to come; prospective 10%+ annualised ROE with EPRA EPS up 3x

Toby Courtauld, Chief Executive, said:

" We are pleased to report on a productive and successful year during which we achieved or exceeded most of the challenging operational targets we set ourselves, in spite of the often extreme and unpredictable macro-political backdrop; we successfully raised and then deployed, ahead of schedule, significant fresh equity capital into exciting new opportunities at a sizeable average discount of more than 50% to those assets' replacement cost; we delivered a record quantity of investment leasing at a healthy 11% premium to ERV, growing rent roll by 15% and validating our focus on creating premium spaces, with our prime office rental values rising by 7.6% and Fully Managed capital values by 12.8% over the year. Pleasingly, our commitment to customer service has been rewarded with an exceptional 87% customer retention rate and an industry-leading Net Promoter Score.

Looking forward, despite ongoing macro-economic uncertainty, we believe that many of the conditions necessary for a period of attractive growth in central London's commercial property values are increasingly evident and we are well placed to prosper; with healthy demand, rents at our well-located, premium spaces will continue rising and we have upgraded our forecasts for the year; we have amassed an enviable pipeline of prime development and refurbishment opportunities covering almost 40% of our portfolio from which we expect to generate material surpluses, given the extreme shortage of such space; London's growing relative attractions are generating early signs of a reinvigorated investment market which will allow us to crystalise surpluses through asset sales; and our deeply experienced teams and strong financial position will enable us to take full advantage of these supportive conditions and generate attractive returns for shareholders, with a prospective 10%+ annualised return on equity and a threefold increase in EPRA EPS over the medium term."

Successful deployment of rights issue proceeds

· £325 million of rights issue proceeds allocated (including capex)

- Four acquisitions (£162 million, all West End) at a 53% discount to replacement cost, including:

- HQ development opportunity at One Chapel Place, W1 for £56.0 million

· Rotating towards sales as investment market strengthens

- £350 million of near-term disposals planned (>50% already under offer)

Strong leasing year, beating ERV by 10.6%; rent roll up 15% with high customer satisfaction scores

· £37.7 million signed (our share: £32.6 million), with market lettings on average 10.6% ahead of March 2024 ERV

· Our Flex offer now 582,000 sq ft with Fully Managed NOI now £19.3 million; up 93% since Interim Results

· Total rent roll up 15% to £123 million, with organic growth potential of 131%

· Vacancy marginally increased to 5.9% as we deliver well-timed refurbishments

· Additional £17.6 million signed since year end at 5.5% premium to March 2025 ERV inc. 30 Duke Street pre-let

· Further £3.0 million of lettings under offer 14.4% above March 2025 ERV

· Leading Net Promoter Score +26.1 (+48.3 Fully Managed); high customer retention 87% (91% Fully Managed)

Valuation up 3.6%² (inc. Fully Managed +12.8%) driven by rental value growth +5.0%²

· Portfolio valuation of £2.9 billion, up 3.6%²; offices +4.3%²

· Rental values up by 5.0%² (+5.3% offices (+7.6% Prime) & +3.5% retail); yield expansion of 12 bp

· Portfolio ERV growth guidance upgraded to 4.0% to 7.0% for FY26 (prime offices 6.0% to 10.0%)

· IFRS NAV and EPRA⁴ NTA per share of 494 pence, up 4.4% since March 2024³ ahead of consensus⁵

· EPRA⁴ earnings £20.2 million, EPRA⁴ EPS 5.2 pence, at cyclical trough as expected and in line with consensus⁵

· IFRS profit after tax of £116.0 million; dividend maintained at £31.9 million or 7.9 pence per share

· ROE +6.0%³ for FY 2025 with prospective >10% ROE CAGR into medium term

Significant development and refurbishment programme set to deliver £217+ million in surpluses

· Good progress at seven on-site development and refurbishment schemes, £357 million capex to come

- Entirety of offices at 30 Duke Street, SW1 pre-let, 15-year term substantially ahead of ERV and underwrite

§ Expected to deliver 35.1% profit on cost and 7.1% development yield

· Two Fully Managed refurbishments completed with strong leasing successes (62% let at 31 March)

· Further four near-term schemes; three HQ, one Flex, starts from Q1 2025; total capex £343 million

· Combined expected surplus of £217 million at current rents and yields; £342 million with 10% rental growth

· Pioneering Circularity Score implemented to reduce use of virgin materials in development

Strong liquidity; £376 million of cash & undrawn facilities; LTV 30.8%

· New £250 million sustainable sterling bond issued in September; new £150 million RCF in October

· EPRA LTV 30.8%, cash and undrawn facilities £376 million; weighted average debt maturity of 5.2 years

¹ All values include share of joint ventures unless otherwise stated ² On a like-for-like basis ³ Pro forma for rights issue ⁴ In accordance with EPRA guidance. We prepare our financial statements using IFRS, however we also use a number of adjusted measures in assessing and managing the performance of the business. These include like-for-like figures to aid in the comparability of the underlying business and proportionately consolidated measures, which represent the Group's gross share of joint ventures rather than the net equity accounted presentation included in the IFRS financial statements. These metrics have been disclosed as management review and monitor performance of the business on this basis. We have also included a number of measures defined by EPRA, which are designed to enhance transparency and comparability across the European Real Estate sector, see note 9 to the financial statements. Our primary NAV metric is EPRA NTA which we consider to be the most relevant investor measure for the Group. ⁵Company compiled analyst consensus (EPS: 5.3p NTA: 484p)

Contacts:
Great Portland Estates plc	+44	(0)	20	7647	3000
Toby Courtauld, Chief Executive
Nick Sanderson, Chief Financial & Operating Officer Stephen Burrows, Director of Investor Relations and Joint Director of Finance
FGS Global	+44	(0)	20	7251	3801
James Murgatroyd & Gordon Simpson

The results presentation will be broadcast live at 9.00 am today with the link available at:

www.gpe.co.uk/investors/latest-results

A conference call facility is also available to listen to the presentation at 9.00am today on the following numbers:

UK wide: +44 (0) 33 0551 0200: Quote: GPE FY25

A video interview with Toby Courtauld and Nick Sanderson is available, along with accompanying presentation materials and appendices, at: www.gpe.co.uk/investors/latest-results

For further information see www.gpe.co.uk or follow us on X at @GPE_London

LEI Number: 213800JMEDD2Q4N1MC42

A dividend reinvestment plan (DRIP) is available to shareholders who would prefer to invest their dividends in the shares of the Company. For those shareholders electing to receive the DRIP, the last date for receipt of a new election is 13 June 2025. More information can be found on our website at www.gpe.co.uk/investors.

Disclaimer

This announcement contains certain forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Actual outcomes and results may differ materially from any outcomes or results expressed or implied by such forward-looking statements.

Any forward-looking statements made by or on behalf of Great Portland Estates plc (GPE) speak only as of the date they are made and no representation or warranty is given in relation to them, including as to their completeness or accuracy or the basis on which they were prepared. GPE does not undertake to update forward-looking statements to reflect any changes in GPE's expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based. Information contained in this announcement relating to the Company or its share price, or the yield on its shares, should not be relied upon as an indicator of future performance.

To view the accompanying graphics please paste the below into your web browser:

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Statement from the Chief Executive

Please see accompanied graphics (see appendix 1)

Strong operational performance

Despite recent macro-economic volatility and persistent geo-political tensions, we have had a strong year. We have delivered new premium spaces for customers to enjoy, validated by some excellent leasing results. We have accretively deployed the proceeds from last year's rights issue, well ahead of programme and at the trough of the market whilst delivering valuation growth for the first time since 2022. With strong occupational markets and sustained demand for premium spaces, our well-timed programme delivering best-in-class HQ buildings and Flex spaces for our customers is positioning GPE for growth.

Delivering our strategy

In June last year, given the opportunities we saw in our investment markets, we raised £335.6 million (net) in a rights issue to invest alongside a £250 million sustainable bond issue in September. These capital raises look to have been well timed. Since then, we have acquired four properties, all in the West End, for £162.1 million (or £325 million including anticipated capex). These acquisitions - two HQ developments and two Fully Managed schemes - add to the deepening pipeline of premium space GPE will be creating over the coming years. Whilst our pipeline of future acquisitions remains healthy, we expect investment markets to improve, our activity will become more balanced between acquisitions and sales as we look to crystallise surpluses where our business plans are complete.

Platform for growth

This time last year we believed that central London's investment markets were at or around their trough. We were right. Since then, our occupational markets have demonstrated continued strength, with prime rents growing as increasingly scarce premium spaces remain in high demand. Furthermore, this year saw a stabilisation in our investment markets, with property yields broadly flat. When combined with our activities, this has lifted property values, with our portfolio up 3.6% year on year.

From here, we think the cycle will continue to improve and we are increasingly optimistic that the significant investment we are making in our portfolio will be well timed to capitalise on these supportive market conditions growing returns for shareholders.

Target-beating leasing year - 10.6% ahead of ERV

At the outset of the year, we set ambitious leasing targets alongside significant planned deliveries of new space. In a very busy year, our Leasing team signed 74 new leases, delivering £37.7 million of new rent, with market lettings 10.6% ahead of the March 2024 ERV. Our leasing was in part driven by the growth of our Fully Managed spaces, where we signed 41 new deals, securing £23.4 million in rent at a 10.1% beat to the March 2024 ERV. Encouragingly, we achieved average Fully Managed rents of £206 per sq ft, supporting our ambitions for further growth across our identified central London Flex clusters and confidence for the next round of deliveries this summer.

High levels of customer satisfaction

Keeping customers happy, and willing to renew their leases on expiry at higher rates, was a key objective for the GPE team this year, minimising vacancy and the associated costs of seeking new customers. We measure our customer satisfaction annually, and once again, delivered a leading portfolio Net Promoter Score of +26.1, significantly ahead of the industry average of +13.6. Impressively, in our Fully Managed spaces we scored +48.3 which supported strong levels of customer retention, with 91% of our Fully Managed customers staying at break or expiry. We also maintained our exceptionally high rent collection rates across the portfolio, securing in excess of 99% of all rents within seven working days.

Rental value growth driving portfolio gains

As customers increasingly seek the highest quality, sustainable spaces, they are facing competition in a market that is experiencing an increased shortage of new Grade A supply. This is driving rental value growth, particularly for the best space. Across our portfolio, we saw a like-for-like increase in rental values of 5.0% over the year, with offices up by 5.3%, and our prime and Fully Managed spaces once again outperforming with growth of 7.6% and 7.5% respectively.

Whilst the investment market has remained relatively quiet, turnover is recovering and yields have stabilised. As a result, bolstered by rental growth, our property values grew by 3.6% on a like-for-like basis. The property valuation growth increased IFRS NAV and EPRA NTA per share by 4.4%, on a pro forma basis, over the year. When combined with an ordinary dividend maintained at £31.8 million, our Total Accounting Return was 6.0%. Including the revaluation of the portfolio, we delivered an IFRS profit after tax for the year of £116.0 million. EPRA earnings were £20.2 million, up 12.8% with diluted EPRA EPS of 5.2 pence, a decline of 11.9%, driven by the greater number of shares in issue post the rights issue.

Favourable outlook for rents

Despite ongoing macro-economic volatility, our confidence and belief in London remain strong. As one of the world's most attractive and diverse mixed-use destinations, London stands unrivalled as a true global city. Its unique ability to attract people and businesses from around the world continues to drive strong demand for commercial space. However, occupiers are increasingly targeting only the highest-quality spaces, and the supply of such premium space in London will substantially lag this demand.

As a result, we anticipate that these market conditions will continue to drive rents upwards and we expect further rental growth of 4% to 7% over the next financial year. For prime office space, our guidance is stronger still at 6% to 10%.

HQ repositioning; delivering the best

Given attractive rental growth prospects over the next few years, we set out to deliver new, best-in-class buildings to take advantage of these conditions and we are currently on-site at three major HQ schemes.

At 30 Duke Street, SW1, our prime office-led scheme on Piccadilly will provide 70,900 sq ft of new Grade A space whilst embracing the principles of the circular economy. Reused steel from the former building at 2 Aldermanbury Square, EC2 is now being installed. The scheme is on track for completion in mid-2026 and is expected to deliver a profit on cost of 35.1%. All of the offices are already pre-let, well ahead of the valuers' ERV, providing significant upside to come.

At Minerva House, SE1, works are progressing well to deliver a new building that will take full advantage of its impressive River Thames frontage, creating an enviable South Bank HQ destination with new public realm and gardens, whilst delivering outstanding sustainability and reuse credentials. It is expected to complete in Q3 2026 and deliver a profit on cost of 19.0%, and we have strong leasing interest in the space.

We also continue to make significant progress at 2 Aldermanbury Square, EC2, where Clifford Chance LLP have pre-leased the entirety of office space (322,600 sq ft). The building is on track for delivery in Q1 2026.

This year, we also took the opportunity to further deepen our pipeline with the acquisition of Whittington House, WC1 and One Chapel Place, W1. In total, we now have four near-term schemes in the pipeline, which together with our seven committed schemes, will deliver 1.1 million sq ft of prime, predominantly office space with exemplary sustainability credentials, along with around £120 million of ERV following our proposed £700 million of capex investment.

Flex spaces; two completions, more to come

This year, we successfully delivered two dedicated Fully Managed buildings at SIX St Andrew Street, EC4 and 31/34 Alfred Place, W1. Leasing at both buildings has been very strong and well ahead of underwrite in both for speed and rents achieved.

Building on this success, we are increasingly confident about our two on-site refurbishments at 141 Wardour Street, W1, and 170 Piccadilly, SW1, which are on track for completion this summer. Together, they will deliver a further 55,500 sq ft of high-quality Fully Managed space. Beyond these projects, we have also committed to refurbishing the recently acquired Courtyard, WC1, and 19/23 Wells Street, W1. With 582,000 sq ft now committed, the strong performance of our Flex portfolio reinforces our ambition to achieve our one million sq ft target.

Taken all together, our refurbishment and development programme is one of the largest in our industry as a proportion of owned assets, timed to deliver into a supply drought.

Set to deliver long-term income and value growth

Given our ambitious growth strategy, we anticipate substantial increases in both income and valuations in the years ahead. Our development and refurbishment programme is expected to generate surpluses of £217 million based on current rents and yields, with considerable upside potential driven by anticipated rental growth. In addition, the delivery of new space will generate meaningful new rent roll, supporting organic growth of around 130% from current levels. Altogether, including our targeted dividend, we are aiming to deliver a medium-term return on equity of over 10%. All of this will be delivered from a position of financial strength, keeping LTV within our target range of 10%-35% through the cycle.

Our portfolio

Please see accompanied graphics (see appendix 2 and 4)

Prime spaces driving valuation uplift

The valuation of our portfolio, including our share of joint ventures, increased over the 12 months by 3.6% on a like-for-like basis, to £2,869.3 million at 31 March 2025.

The key drivers behind the Group's valuation increase for the year, including joint ventures at share, were:

· our Fully Managed portfolio increased by 12.8% in the 12 months on a like-for-like basis with our four Flex refurbishment projects, including two that completed in the year, up 16.4% largely due to rental value increases across our prime spaces;

· rental value growth - the continued demand for our best-in-class spaces has helped increase our rental values. Since the start of the financial year, our rental values increased by 5.0% on a like-for-like basis, with our office portfolio up by 5.3% and our prime offices up even higher by 7.6%. ERVs in our retail portfolio increased by 3.5%;

· higher investment yields - given the backdrop of higher interest rates, equivalent yields increased marginally by 12 basis points (2024: 56 basis points) during the year (office: +14 basis points; retail: +5 basis points). At 31 March 2025, the portfolio true equivalent yield was 5.5%;

· HQ developments values stabilising - the valuation of our three committed HQ development properties increased by 1.2% on a like-for-like basis to £372.9 million during the period; and

· portfolio management - we delivered a strong leasing year, signing new leases, rent reviews and renewals, with new lettings 10.6% ahead of the March 2024 ERV. This secured £40.0 million (our share) of annual income, supporting the valuation over the year. At 31 March 2025, the portfolio was 11.0% reversionary.

Including rent from leases currently in rent-free periods, the adjusted initial yield of the investment portfolio at 31 March 2025 was 3.8%, 10 basis points lower than the start of the financial year.

Whilst the overall valuation increased by 3.6% during the year on a like-for-like basis, elements of the portfolio continued to show greater variation:

· overall our office portfolio increased by 4.3% (supported by the strong performance of our Fully Managed office space +12.8%), outperforming the Group's retail space which was up 1.0% as the retail recovery continues on the back of further rental growth (+3.5%);

· including developments, our West End portfolio (+4.5%) performed better than our rest of London portfolio (+1.5%), given a greater yield expansion in the City (+23 basis points) as well as rent value growth in our West End portfolio of +5.9% outperforming the City +3.9%;

· newer, higher quality buildings outperformed older assets, with those assets with a capital value per sq ft in excess of £1,000 per sq ft, increasing in value by 5.8% compared to those with a capital value per sq ft of less than £1,000 per sq ft which reduced by 0.9%; and

· buildings with better sustainability credentials continued to outperform. Buildings with an EPC rating of A or B increased in value by 4.8%, outperforming properties with an EPC of C or D which increased by 2.1% in the year.

Our joint venture properties increased in value by 2.7% over the year, driven by our prime mixed-use Hanover Square site, whilst our wholly-owned portfolio increased by 3.8% on a like-for-like basis.

Our development activities and capex programme

With supportive occupational markets, our development activities are extensive. Our forecasts indicate that the supply of new commercial space in London is severely limited. We estimate the delivery of only 2.7 million sq ft of new space annually over the next four years, while average demand will be significantly higher at 4.7 million sq ft per annum. Our development programme is designed to create new premium spaces with exceptional sustainability credentials into these favourable markets through the development of new HQ spaces and the expansion of our Fully Managed office offer. Overall, we anticipate that our planned capex of £700 million will deliver development surpluses to come of £217 million, with the potential for this to increase as rents are forecast to grow.

Three committed HQ development schemes

At 2 Aldermanbury Square, EC2, which is fully pre-let to Clifford Chance LLP, construction works are progressing well as we substantially increase the size of the building to 322,600 sq ft (up from 176,000 sq ft). Installation of the steel frame is complete and the building 'topped out' in February this year. On completion, the scheme will provide a number of public realm and amenity improvements that will have a positive impact on the local area. The new building will have best-in-class sustainability metrics and we are targeting BREEAM 'Outstanding'.

Whilst the development is currently anticipated to deliver a loss on cost from the commitment date of 12.6%, given market yield expansion driven valuation declines to date, from the 31 March 2025 valuation the scheme is expected to deliver around £21 million of future profit.

At 30 Duke Street, SW1 (formerly French Railways House & 50 Jermyn Street), the deconstruction of the existing buildings on the site is now complete and the new steel from the dismantling of City Place House (now 2 Aldermanbury Square, EC2) is being installed. Our major office-led redevelopment will provide 70,900 sq ft (up from 54,700 sq ft) of new Grade A space. Once complete, the building will provide best-in-class, column free space together with high-specification amenities including a wellness suite, private terraces on the upper floors, a communal roof terrace with panoramic views, as well as the highest sustainability credentials. The building is expected to complete in Q3 2026 and we have pre-let all of the office space at rents significantly above our underwrite. We have £70 million of costs to come and the scheme is anticipated to deliver a profit on cost of 35.1%, an ungeared IRR of 18.9% and a 7.1% development yield.

At Minerva House, SE1, our extensive refurbishment will take the overall commercial space to 143,000 sq ft, an increase of approximately 56% on the existing area. We are maintaining over 70% of the existing fabric and introducing innovative ways of working that will further reduce the overall embodied carbon impact of the development. As part of our activities, 20 tonnes of glass have been salvaged from the site and used in the production of new glass; this is one of the first schemes in the country to participate in this truly circular and innovative process. We have good leasing interest in all the spaces and anticipate the scheme will deliver a profit on cost of 19.0%, an ungeared IRR of 11.6% and a development yield of 7.0%.

In total, across the three on-site HQ schemes we have committed expenditure to come of £277 million and an anticipated development surplus to come of £111 million.

Three near-term development schemes

Beyond our three committed schemes, we have a further three schemes in our near-term pipeline.

At our Soho Square Estate, W1, located in the heart of the West End at the eastern end of Oxford Street, we are progressing our plans to commence the redevelopment in the second half of 2025. We have reworked the designs, are progressing neighbourly matters and, with a new planning permission from Westminster to improve the quality of office and retail space, we are further increasing its attractiveness to prospective customers in a materially undersupplied market. Our designs will provide a best-in-class HQ office building on Soho Square with flagship retail fronting Oxford Street, arranged over basement, lower ground, ground and eight upper floors, with multiple private terraces and a communal roof terrace.

At St Thomas Yard, SE1 (formerly New City Court), we have submitted a planning application to the London Borough of Southwark to extensively refurbish the existing space utilising a reuse and extend approach (similar to Minerva House). The building will serve as another exemplar of our circular economy approach and is expected to perform favourably in terms of our Circularity Score. Our plan will increase the building to 188,800 sq ft of high quality, HQ offices, up from 98,000 sq ft today. We anticipate that the planning application will be approved by the end of the year.

At the recently acquired Whittington House, WC1, we have now achieved vacant possession and are planning to refurbish the building to deliver 74,800 sq ft of new Grade A offices, in close proximity to both The Courtyard and the recently completed 31/34 Alfred Place, both WC1. The building will be arranged over basement, ground and seven upper floors with a new terrace on the first floor, together with a communal roof terrace with pavilion amenity space. We will shortly be submitting a planning application to Camden for our proposals. The building is delivered with a high degree of retention of existing materials, including the structure and facade, highlighting our commitment to the principles of the circular economy.

In total, our three committed and three near-term schemes are expected to deliver 893,300 sq ft of best-in-class, highly sustainable space, perfectly placed to benefit from a market where forward-look supply is severely constrained. In total the schemes will require around £583 million of anticipated capital expenditure to complete.

New scheme added to the pipeline

Following our acquisition of One Chapel Place, W1, we have added the building to our pipeline. The building was acquired with plans to materially increase the scale of the building on this prime site. We intend to improve the designs with the aim of achieving planning permission ahead of vacant possession of the building in 2028.

Commitment to further Flex expansion

In order to expand our Flex office offers and meet our ambitious targets for growth, we have a significant refurbishment programme to provide new dedicated Fully Managed spaces, as well as converting a significant number of individual floors across our portfolio.

Two Fully Managed buildings completed

During the year, we completed the refurbishment and conversion of two buildings, creating 89,500 sq ft of premium Fully Managed space.

At SIX St Andrew Street, EC4, we delivered 47,800 sq ft of new Grade A Fully Managed offices in November 2024. We added two new storeys, together with extensive terracing and significant amenity throughout the building. The building has been well-received, with strong leasing momentum. To date, 23,000 sq ft has been let, 8.9% above ERV, exceeding our expectations.

At 31/34 Alfred Place, WC1, in the heart of Fitzrovia, we completed the extensive refurbishment of the entirety of the 41,700 sq ft building to provide outstanding Fully Managed office space. We have been extremely pleased with the leasing activity to date, and the building is now 74% let, 6.3% ahead of ERV, including our largest ever Fully Managed lease to Next.

Further deliveries to come from summer 2025

Construction progress has been good at both 141 Wardour Street, W1 and 170 Piccadilly, SW1 (formerly Egyptian and Dudley House), which are being comprehensively refurbished to provide 29,900 sq ft and 25,600 sq ft of new Fully Managed led space respectively. Both schemes are set to complete in summer 2025 and, given our recent Fully Managed leasing success, we are optimistic about their prospects.

At The Courtyard, WC1, opposite 31/34 Alfred Place, we have recently received a planning approval for a significant refurbishment of the building to deliver 63,600 sq ft of new space, including 47,000 sq ft of Fully Managed offices. Our plans will add additional amenity on the roof, together with substantially reconfiguring the retail space on Tottenham Court Road. We commenced the strip out of the space and anticipate completion in spring 2027.

Together with a number of other conversions, we anticipate growing our Flex offerings from 582,000 sq ft today to 672,000 sq ft organically. Moreover, we are aiming to add to this programme through acquisition and are targeting enlarging our Flex offerings to one million sq ft over the next few years.

How we are positioned

In total, our HQ development and Flex capex programme provides a strong platform for organic growth. Together, our on-site and near-term schemes will deliver 1.1 million sq ft of well-designed, tech-enabled and sustainable space into a market where prospective supply is increasingly limited. Moreover, with around £217 million of anticipated profit to come based on today's rents and yields, which could grow to £342 million with 10% rental growth, they will be a significant contributor to the Group's growth in the coming years.

Our leasing and Flex activities

With the business primed for growth, and significant deliveries of new space in the year, we have tapped into strong demand for premium space, driving significant rental growth through standout leasing and exceptional customer delivery. Supported by our Fully Managed spaces, we signed £37.7 million of new leases, beating March 2024 rental values by 10.6%. This included our largest ever Fully Managed lease to date at 31/34 Alfred Place, WC1, with FTSE 100 retailer Next.

During the year, our rental values increased by 5.0% across the portfolio, at the upper end of last year's rental growth guidance of between 4.0% and 7.0%. With a market starved of new, Grade A supply, offices outperformed retail with like-for-like office rental values increasing by 5.3% compared with a 3.5% increase in retail rental values. Within our office portfolio, our Fully Managed rental values outperformed, increasing by 7.5% on a like-for-like basis.

The key leasing highlights for the year included:

· 74 new leases and renewals completed (2024: 66 leases), generating annual rent of £37.7 million (our share: £32.6 million; 2024: £19.8 million), with market lettings 10.6% ahead of the valuers' 31 March 2024 ERV;

· 45 Flex leases signed, four Fitted and 37 Fully Managed, achieving on average £206 per sq ft on the Fully Managed space, 10.1% ahead of March 2024 ERV;

· 16 new retail leases signed, securing £5.5 million of rent with market lettings 4.6% ahead of March 2024 ERV;

· ten rent reviews securing £10.0 million of annual rent (our share: £7.4 million; 2024: £8.4 million) were settled at an increase of 6.2% over the previous rent and 11.8% ahead of ERV at review date;

· total space covered by new lettings, reviews and renewals was 359,800 sq ft (2024: 401,500 sq ft);

· the Group's vacancy rate increased to 5.9% (31 March 2024: 1.3%), owing to recent completions of Fully Managed refurbishments, including SIX St Andrew Street and 31/34 Alfred Place;

· the Group's rent roll increased by 14.6% to £123.2 million following our recent acquisitions and successful leasing period (not including the pre-let at 2 Aldermanbury Square, EC2 or 30 Duke Street, SW1); and

· of the 74 leases with breaks or expiries in the 12 months to 31 March 2025, 93% were retained (87%), re-let, or placed under offer (by area), leaving only 17,300 sq ft still to transact.

Customer demand is growing and broadening for premium, sustainable workspaces, including those that offer increased levels of service and flexibility. This supportive structural backdrop, combined with increasing shortage of such supply, means we are well positioned. Accordingly, our rental growth guidance for the next year continues to remain positive, at 4.0% to 7.0%, with the best spaces even higher at 6.0% to 10.0%.

Fully Managed: outsized growth and returns

Our unique Flex offer is delivering growing and outsized returns with £24.5 million of new leases in the year at 10.1% ahead of March 2024 ERV. Total Flex leasing across the GPE portfolio covered 123,300 sq ft.

Following extensive refurbishment, we completed 31/34 Alfred Place, WC1, our 41,700 sq ft Fully Managed building, in January 2025. Since completion, we have let more than 27,600 sq ft of space at an average rent of £220 per sq ft. This included our largest ever Fully Managed deal to date, letting over 11,500 sq ft to FTSE 100 retailer Next, ahead of underwrite and on a five-year term. 31/34 Alfred Place, WC1 forms part of a growing Fitzrovia cluster, with The Courtyard and Whittington House in close proximity.

At SIX St Andrew Street, EC4, the refurbishment completed in early November 2024. To date, around 23,000 sq ft of the 47,800 sq ft has been let to six new customers at an average rent of £198 per sq ft.

With strong demand for GPE's Fully Managed product across the portfolio, confidence remains high for leasing the remainder of 31/34 Alfred Place, WC1, and SIX St Andrew Street, EC4, together with the prospects of our next building launches at 170 Piccadilly, SW1 and 141 Wardour Street, W1, this summer.

Our Flex space; targeting one million sq ft

Our ambition to reach one million sq ft of Flex space is undiminished, and during the year we increased our committed Flex offering across the portfolio to a total of 582,000 sq ft (c.25% of our offices or c.20% of the total portfolio).

Looking forward, we will further drive our Flex growth through converting our existing spaces as they become available and through acquisition. Our recent investment in our Flex platform means we have both the team and infrastructure in place to accommodate this growth and to drive efficiencies and economies of scale. Looking forward, the pipeline of new spaces remains strong. We will deliver two new premium Fully Managed buildings this summer and we have recently added to the pipeline with the acquisition of The Courtyard, WC1 and 19/23 Wells Street, W1. Our strategy is to create targeted Flex clusters, in amenity-rich locations, with excellent transport links, with the aim of growing our Flex portfolio, both organically and through acquisition, to one million sq ft.

Ready to Fit: £7.0 million of deals completed

We completed six Ready to Fit deals across various buildings during the year, beating the March 2024 ERV by 17.1%.

Our largest leasing deal during the year was at 200 & 214 Gray's Inn Road, WC1, where Independent Television News (ITN) renewed both of its leases for 117,000 sq ft of workspace at a 284,500 sq ft media hub building owned by a 50:50 joint venture between GPE and Ropemaker Properties (BP Pension Fund). With a £4.1 million annual rent, the new ten-year lease demonstrates ITN's confidence in GPE to upgrade the building whilst continuing to meet their customer needs.

In May 2025, we pre-let the entirety of the office space (62,500 sq ft) at 30 Duke Street, SW1 to leading global investment firm CD&R, on a 15-year term without break and with rents ahead of March 2025 ERV. The lease will commence shortly after practical completion in summer 2026.

Retail: £5.5 million of deals completed, strengthening our retail offer

We have continued to lease successfully across our prime retail portfolio into resurgent retailer demand. We secured £5.5 million of new retail leases in the year, with 11 new customers to complement our diverse range of retail brands.

Following the 22,500 sq ft letting to TK Maxx announced last year at Mount Royal, 508/540 Oxford Street, W1, and the associated regear of the Superdrug lease, a further three retail deals were completed this year, totalling 20,000 sq ft. Almost 60% of the retail space available at Mount Royal, W1, is now recently let, with a diverse offer of retail brands in place who share a long-term vision for the retail revolution we are seeing on Oxford Street.

Swarovski, the luxury crystal and fine jewellery brand, signed a new ten-year lease in June 2024 for its latest London store at 122 Regent Street, W1, comprising of 1,500 sq ft across three floors. With its broad reach worldwide, Swarovski complements the wider retail offering at the iconic Grade II listed Kingsland and Carrington House.

In October 2024, we let 6,900 sq ft at 6/7 Portman Square, Orchard Court, W1 to Gaggenau for their new global flagship store. As a luxury brand for professional-grade home appliances, Gaggenau will anchor GPE's newly marketed 'Portman & Wigmore' which includes 1/9 Portman Square and 132/142 Wigmore Street, W1, creating a striking new location for high-end retail and showroom use.

Customer First delivering customer retention

With our 'Customer First' approach embedded in the year, our customer retention numbers remain high at 87% across the whole portfolio and 91% across our Fully Managed spaces for the last 12 months. Our retention rates demonstrate that, as well as providing great spaces, our team is also delivering market-leading customer experience. Our success was underpinned by our leading portfolio NPS score of +26.1, or +48.3 across our Fully Managed spaces, materially ahead of the industry average of +13.6.

High retention helps reduce vacancy costs and lowers refresh capital expenditure in our Flex spaces. Furthermore, should a customer need to move, we aim to utilise our broad portfolio to allow them to grow or contract with us. This includes transitioning some of our Ready to Fit customers into our Flex space, as well as providing opportunities for some of our smaller Flex customers to graduate into larger and longer-term spaces as they grow.

How we are positioned

Despite the volatile macro-economic backdrop, the current occupational trends play to our strengths. The deep customer demand for premium spaces continues to dramatically outstrip supply and the trend for smaller spaces to be provided on a flexible basis is increasingly becoming the norm. With the gap between the best and the rest likely to widen further.

Against this backdrop, we are strongly positioned: we have excellent leasing momentum with GPE's premium HQ and Fully Managed spaces in high demand and we are confident for the next round of deliveries. With the team and infrastructure in place to support significant income and value growth, there is more to come with an exceptional pipeline of committed developments.

Our investment activities

Activity levels in central London investment markets have remain muted given the volatile macro-economic backdrop and interest rate environment. After completing our fully underwritten £350 million rights issue in June last year, we have continued to exploit this extended window of opportunity and attractive pricing. In addition to the organic capital expenditure investment we have made during the year, we have completed four acquisitions, totalling £162.1 million.

Acquisitions for the year ended 31 March 2025

	Price £m	NIY %	Area sq ft	Cost per sq ft
The Courtyard, WC1	28.6	n/a	62,700	462
19/23 Wells Street, W1	19.0	4.0%	19,200	991
Whittington House, WC1	58.5	8.6%	74,500	785
One Chapel Place, W1	56.0	4.4%	34,200	1,636
Total	162.1		190,600	850

In May 2024, we exchanged on a property swap to acquire The Courtyard, WC1 in exchange for 95/96 New Bond Street, W1 at £18.2 million plus £10.4 million of cash consideration equating to, £462 per sq ft, c.69% below replacement cost. The Courtyard comprises 62,700 sq ft of vacant office and partially let retail space and is well suited to be repositioned into the Group's Fully Managed offering. The Courtyard is located in a prime West End location, around 400 metres from Tottenham Court Road Elizabeth line station, and is opposite 31/34 Alfred Place, WC1 one of the Group's other Fully Managed buildings. The acquisition completed in January 2025.

In October 2024, we acquired 19/23 Wells Street, W1, for £19.0 million (£991 per sq ft, c.45% below replacement cost). Simultaneously, GPE secured a new 125-year headlease with Berners-Allsopp Estate for £1.25 million, effective October 2024 to October 2149. The 19,200 sq ft Fitzrovia building spans six floors plus a basement and we plan to convert it to our Fully Managed offer and enhance the ground floor for best-in-class amenity, targeting a 6.5% yield on cost.

In November 2024, we acquired the long leasehold interest of Whittington House, WC1 for a headline price of £58.5 million (£785 per sq ft on current NIA, c.60% discount to replacement cost). Located a short walk from the Tottenham Court Road Elizabeth line station, the 74,500 sq ft HQ building provides GPE with an exciting opportunity to create outstanding office spaces that draw upon its iconic Richard Seifert & Partners design, delivering eight floors of sustainable offices with market-leading amenity, fronting on to the newly pedestrianised Alfred Place.

Whittington House sits adjacent to GPE's existing holdings at 31/34 Alfred Place and opposite The Courtyard, thereby adding to a growing cluster of buildings that will provide GPE customers with a choice of spaces and amenity in this vibrant location.

In March 2025, we acquired the freehold of One Chapel Place, W1 for a headline price of £56.0 million. The 34,200 sq ft building is fully let at an annual rent of c.£2.5 million per annum, with the office leases due to expire in mid-2028. The building is located in the heart of the West End, just a short walk from Bond Street tube station and the Elizabeth line. The acquisition provides GPE with an exciting opportunity to increase the scale of the building and deliver a highly sustainable, best-in-class HQ redevelopment in this prime location.

Sales for the year ended 31 March 2025

	Price £m	Premium/ (discount) to book value %	Price per sq ft £	NIY %
95/96 New Bond St, W1	18.2	(0.8%)	2,035	1.4%
Total	18.2	(0.8%)	2,035

How we are positioned

We are actively seeking new buildings for our Flex offerings, as well as opportunities for HQ repositioning or development and we increasingly expect the sustainability challenge to provide us with opportunities to acquire stranded assets needing a sustainability solution.

Encouragingly, we anticipate that market conditions will continue to provide opportunities to buy as we see more assets trading closer to our view of fair value. Furthermore, we currently have £1.0 billion of assets actively under review. They are predominantly off market, with the majority being HQ repositioning opportunities, and over half are in the West End. However, we remain disciplined. Any potential purchase needs to outperform the assets we already own, and with our existing portfolio stacked with opportunity, the hurdle is high.

With capital values rising and investment market activity improving, albeit from a low base, we anticipate shifting our focus towards sales, as we look to crystallise surpluses where our business plans are complete, including some of our long-dated assets. Accordingly, we have around £350 million of near-term sales under consideration.

Our financial results

Please see accompanied graphics (see appendix 3)

£350 million rights issue completed

In June 2024, we completed a fully underwritten three for five rights issue to raise gross proceeds of approximately £350.3 million (£335.6 million net of expenses) through the issue of 152,320,747 new ordinary shares at a price of 230 pence each. The rights issue was designed to allow GPE to seize the significant opportunity we saw emerging in the central London commercial real estate space. We have now allocated the majority of the funds into new opportunities. Comparative per share metrics for prior years have been adjusted accordingly (see note 9 to the financial statements).

Valuation uplifts increase IFRS NAV and EPRA NTA

IFRS NAV and EPRA NTA per share at 31 March 2025 were 494 pence per share compared to the pro forma net assets per share of 473 pence at 31 March 2024 (see below), an increase of 4.4% over the year, largely due to the 3.6% like-for-like valuation uplift in the property portfolio. When combined with ordinary dividends paid of £31.8 million, this delivered a Total Accounting Return of 6.0%.

The main drivers of the 21 pence per share increase in EPRA NTA from 31 March 2024 included:

· the increase of 24 pence per share arising from the revaluation of the property portfolio, with values troughing as anticipated last year; virtually all of the increase in value was driven by rental growth and our leasing activities;

· EPRA earnings for the year of 5 pence per share enhanced NTA; and

· ordinary dividends paid of 8 pence per share (based on the closing number of shares) reduced NTA.

At 31 March 2025, the Group's net assets were £2,000.7 million, up from £1,583.0 million at 31 March 2024, with the increase largely attributable to the receipt of the £335.6 million net proceeds from the rights issue and the 3.6% increase in the property valuation. EPRA NDV and EPRA NRV were 506 pence and 546 pence at 31 March 2025 respectively, compared with 537 pence and 576 pence at 31 March 2024, on an EPRA basis.

Revenue stable; rental income down given high level of refurbishment activity

Revenue for the year was £94.2 million, marginally down from £95.4 million on the prior year, driven by a reduction in rental income including lease incentives (down £4.9 million), reduced service charge income (down £1.6 million) and greater Fully Managed services income (up £4.5 million) given its expansion. The Group's revenue was supported by our successful leasing as we continued to deliver new space across the portfolio. We signed 74 leases, generating new annual income of £37.7 million p.a. (our share: £32.6 million), with the majority of activity across our Fully Managed properties.

Net rental income, after taking account of expected credit losses, lease incentives and ground rents, was £67.3 million, down from £72.1 million in the prior year, as we continued to take space back from customers to enable us to create new HQ and Fully Managed spaces.

Adjusting for acquisitions, disposals and transfers to and from the development programme, like-for-like rental income (including share of joint ventures) decreased by 0.7% excluding expected credit losses.

Joint venture fee income for the year was £2.5 million, an increase of £0.8 million, as a result of increased leasing activity in the joint ventures during the year, including the lease renewal with ITN at 200 Gray's Inn Road, WC1.

Strong rent collection

We secured in excess of 99% of all rents, including in our joint ventures, within seven days of the due date. Since 1 April 2024, one of our customers went into administration, representing less than 0.1% of our rent roll. At 31 March 2025, we held rent deposits and bank guarantees totalling £22.9 million, including our share of joint ventures.

Cost of sales increased

Cost of sales increased from £33.3 million to £35.1 million for the year ended 31 March 2025. This increase was primarily driven by increased Fully Managed service expenses which rose to £10.8 million, from £8.1 million in the prior year, as we increased the delivery of this space across the portfolio. At 31 March 2024, we had 82 Fully Managed units; at 31 March 2025 this rose to 118 units. Service charge expenses reduced by £1.2 million, in line with the greater weighting to Fully Managed spaces, which do not have service charge arrangements. Other property expenses and ground rents were largely unchanged year on year.

Taken together, net service charge income, net Fully Managed services income and expenses, other property costs and expected credit loss provisions for service charges reduced to £10.9 million from £11.8 million in the prior year.

Joint venture earnings

EPRA earnings from joint ventures was £7.3 million, down from £9.8 million in the prior year, with the reduction primarily due to the departure of ITV from 200 Gray's Inn Road, WC1. ITV's lease expired on 31 March 2024, providing an opportunity to refurbish the space, together with dramatically improving the amenity in the building. The refurbishment works are anticipated to complete in summer 2026.

Administration costs down

Administration costs were £40.0 million, £2.3 million lower than the previous year. Employment costs reduced marginally over the period, as increases from additional headcount and inflationary adjustments were more than outweighed by the one-off restructuring costs incurred in the prior year. The reduction in the Group's overhead was driven, in part, by lower IT, HR and marketing spend together with lower occupational costs following the renegotiation of the lease for the Group's head office.

Increased gross interest costs

Gross finance costs on our debt facilities were £39.6 million, £10.6 million higher than the prior year. This increase was primarily due to a combination of higher levels of average drawn debt (including greater utilisation of the Group's £250 million term loan and the issue of our £250 million inaugural sustainable sterling bond), which was used to fund both our recent acquisitions as well as capital expenditure on the Group's development and Flex refurbishments, together with higher underlying interest rates.

Capitalised interest was £26.5 million, up £15.2 million on the prior year given heightened development activity, including greater cumulative spend across our committed developments together with a number of refurbishment schemes to deliver on our Flex ambitions, including 141 Wardour Street, W1, 170 Piccadilly, SW1, SIX St Andrew Street, EC4 and 31/34 Alfred Place, WC1. As a result, the Group had net finance costs (including interest receivable) of £13.1 million (2024: £17.7 million).

EPRA earnings

EPRA earnings were £20.2 million, 12.8% higher than last year as expected, predominantly due to lower net finance and administration costs more than offsetting lower net rental income and the Group's tax charge.

Revaluation uplifts in the Group's investment properties, together with improved EPRA earnings, led to the Group's
reported IFRS profit after tax of £116.0 million (2024: loss of £307.8 million). Basic and diluted earnings per share for the year were 30.2 pence and 30.1 pence respectively, compared with a 101.4 pence loss for 2024 (restated for the impact of the rights issue). Diluted EPRA EPS was 5.2 pence (2024: 5.9 pence restated), a decrease of 11.9%, and cash EPS was 0.3 pence (2024: 1.2 pence).

Results of joint ventures

The Group's net investment in joint ventures increased to £507.2 million at 31 March 2025, up from £491.3 million in the previous year. The increase is largely due to the 2.7% like-for-like increase in value of the joint venture property portfolio. Our share of joint venture net rental income was £15.9 million, down from £19.4 million last year, with the reduction primarily due to the expiry of ITV's lease at 200 Gray's Inn Road, WC1, in the Great Ropemaker Partnership.

Our capital strength

While our primary objective is to deliver returns consistently ahead of our cost of capital, we also seek to minimise the cost of our capital through the appropriate mix of equity and debt finance, and to ensure that we have access to sufficient financial resources to implement our business plans. Optimising and flexing the allocation of capital across our portfolio, including between our investment and development activities, is key to our business and ensuring that we maximise returns on a risk-adjusted basis through the property cycle. Accordingly, we operate with four key 'givens':

· conservative leverage to enhance, not drive, returns;

· sustainable ordinary dividends;

· disciplined capital allocation; and

· balance sheet efficiency - track record of accretively raising and returning capital.

Our preference for low financial leverage helps to provide downside protection when operating in the cyclical central London property market and to maintain the financial flexibility to allow us to act quickly on new investment opportunities as they arise.

Our capital strength; EPRA LTV of 30.8%

The Group's consolidated net debt increased to £817.0 million, or £835.7 million excluding customer deposits at 31 March 2025, compared with £738.0 million at 31 March 2024. The movement in the year was largely driven by the acquisition of four buildings for £162.1 million (excluding costs), together with £288.1 million of development and refurbishment capital expenditure across the Group. This investment more than outweighed the net proceeds from the rights issue last summer. Overall, given the new equity capital raised from the rights issue, the Group's gearing decreased to 41.9% at 31 March 2025 from 46.8% at 31 March 2024.

Including cash balances in joint ventures, total net debt, excluding net liabilities, was £801.1 million (2024: £695.3 million) or £820.9 million excluding customer deposits, equivalent to an EPRA LTV of 30.8% (2024: 32.6%). At 31 March 2025, we had no external debt in any of our joint ventures. At 31 March 2025, the Group, including its joint ventures, had unrestricted cash (£33.0 million) and undrawn committed credit facilities (£343.0 million) totalling £376.0 million.

During the year, to support the delivery of our strategic priorities, including funding the Group's near-term development programme, the Group concluded a number of debt transactions:

· In May 2024, we repaid the Group's £175 million private placement notes on maturity;

· In November 2024, we repaid £175 million of the £250 million term loan;

· In September 2024, we issued a £250 million seven-year sterling sustainable bond; and

· -In November 2024, we signed a new £150 million ESG-linked Revolving Credit Facility.

Including this activity, the Group's weighted average cost of debt for the year, including fees, was 5.2% and its weighted average interest rate (excluding fees) was 4.7%, up from 4.3% and 4.1% respectively. At 31 March 2025, our weighted average drawn debt maturity was 5.2 years (31 March 2024: 3.4 years).

At 31 March 2025, 85% of the Group's total drawn debt was at fixed or hedged rates (2024: 87%). The Group is operating with substantial headroom over its debt covenants. At 31 March 2025, given our low levels of leverage, property values would have to fall a further 41% before covenant breach.

Balance sheet discipline

When considering the appropriate level of financial leverage in the business, we apply the same capital discipline that we use when making asset-level decisions. Typically, we aim for an EPRA LTV ratio of between 10% and 35% through the cycle. Additionally, we have a track record of accretively raising and returning equity capital to shareholders at the appropriate time and in the appropriate circumstances, including returning £616 million to shareholders between 2017 and 2020, following profitable recycling activity.

Taxation

The current tax charge for the year was £1.6 million (2024: £nil) and the deferred tax charge for the year was £0.2 million (2024: £nil). The effective tax rate on EPRA earnings was 7.4% (2024: 0%). The majority of the Group's income is tax-free as a result of its REIT status, and other allowances were available to set against non-REIT profits. The Group complied with all the requirements necessary to maintain its REIT status throughout the year.

As a REIT, the majority of rental profits and chargeable gains from our property rental business are exempt from UK corporation tax, provided we meet a number of conditions, including distributing at least 90% of the rental income profits of this business (known as Property Income Distributions (PIDs)) on an annual basis. These PIDs are then typically treated as taxable income in the hands of shareholders. During the year, the Group paid £10.1 million of PIDs. If our REIT interest cover is below 1.25x each year, we are subject to corporation tax on the shortfall. During the year, our REIT interest cover was below 1.25x and as a result we incurred a current tax charge of £1.6 million.

The Group's REIT exemption does not extend to either profits arising from the sale of trading properties or gains arising from the sale of investment properties in respect of which a major redevelopment has completed within the preceding three years. The Group is otherwise subject to corporation tax.

Despite being a REIT, we are subject to a number of other taxes and certain sector-specific charges in the same way as non-REIT companies. During the year, we incurred £15.3 million in respect of stamp taxes, section 106 contributions, community infrastructure levies, empty rates in respect of vacant space, head office rates, employer's National Insurance and irrecoverable VAT.

All entities within the Group are UK tax resident; as our business is located wholly in the UK, we consider this to be appropriate. The Group maintains an open working relationship with HMRC and seeks pre-clearance in respect of complex transactions. HMRC regards the Group as 'low risk' and maintaining this status is a key objective of the Group.

Financial outlook

As we deliver on our business plans and crystallise surpluses, we expect property values and net assets to grow from here, supported by our positive market outlook. Furthermore, as we deliver new spaces we expect to increase income and EPRA EPS, supporting our progressive dividend policy. As a result, we expect our Total Accounting Return to strengthen further and are targeting an annual return on equity above 10%, excluding potential yield compression.

Ordinary dividends

Given the low yielding nature of London real estate, the Group operates a low and progressive ordinary dividend policy, with the aim of maintaining average dividend cover of 1.0x through the cycle. The Board recommended that, following the rights issue, the total dividend for the year would be stable on a cash basis with the prior year. As such, in the period the Group paid a final dividend of 7.9 pence per share (on the pre-rights number of shares) and an interim dividend of 2.9 pence per share (on the post rights number of shares). The Board has recommended a final dividend for the year ended 31 March 2025 of 5.0 pence per share, which will be paid, subject to shareholder approval, on 7 July 2025 to shareholders on the register on 30 May 2025. None of the final dividend will be a REIT PID in respect of the Group's tax-exempt property rental business.

Group income statement

For the year ended 31 March 2025

	Notes	2025 £m	2024 £m
Revenue	3	94.2	95.4
Cost of sales	4	(35.1)	(33.3)
		59.1	62.1
Administration expenses	5	(40.0)	(42.3)
Other income		0.6	-
Expected credit losses		(0.2)	(0.1)
Operating profit before surplus/(deficit) from investment property, revaluation movements and results of joint ventures		19.5	19.7
Surplus/(deficit) from investment property	10	83.2	(267.3)
Deficit on revaluation of other investments	13	(0.4)	(0.2)
Share of results of joint ventures	11	21.8	(46.7)
Operating profit/(loss)		124.1	(294.5)
Finance income	6	7.2	6.1
Finance costs	7	(13.1)	(17.7)
Fair value loss on derivatives	17	(0.4)	(1.7)
Profit/(loss) before tax		117.8	(307.8)
Tax	8	(1.8)	-
Profit/(loss) for the year		116.0	(307.8)

Basic earnings/(loss) per share1	9	30.2p	(101.4p)
Diluted earnings/(loss) per share1	9	30.1p	(101.4p)
Basic EPRA earnings per share1	9	5.3p	5.9p
Diluted EPRA earnings per share1	9	5.2p	5.9p

1. Previous year per share metrics adjusted for the June 2024 rights issue.

All results are derived from continuing operations in the UK and are attributable to ordinary equity holders.

Group statement of comprehensive income

For the year ended 31 March 2025

	Notes	2025 £m	2024 £m
Profit/(loss) for the year		116.0	(307.8)
Items that will not be reclassified subsequently to profit and loss
Actuarial (loss)/gain on defined benefit scheme	26	(0.8)	0.1
Deferred tax on actuarial (loss)/gain on defined benefit scheme	8	0.2	-
Total comprehensive income/(expense) for the year		115.4	(307.7)

Group balance sheet

At 31 March 2025

	Notes	2025 £m	2024 £m
Non-current assets
Investment property	10	2,455.5	1,911.0
Investment in joint ventures	11	507.2	491.3
Property, plant and equipment	12	0.9	2.0
Pension asset	26	4.8	4.9
Derivative financial instruments	17	-	0.4
Other investments	13	2.8	2.4
		2,971.2	2,412.0
Current assets
Trade and other receivables	14	20.7	24.9
Cash and cash equivalents	22	36.9	22.9
		57.6	47.8
Current assets held for sale
Investment property held for sale	10	-	18.2
		-	18.2
Total assets		3,028.8	2,478.0
Current liabilities
Interest-bearing loans and borrowings	16	-	(175.0)
Trade and other payables	15	(85.5)	(76.2)
Corporation tax	8	(2.6)	(0.3)
		(88.1)	(251.5)
Non-current liabilities
Interest-bearing loans and borrowings	16	(848.0)	(565.4)
Head lease obligations	18	(87.0)	(74.1)
Occupational lease obligations	19	-	(1.0)
Deferred consideration		(2.0)	-
Provisions in respect of warranties on sold buildings		(3.0)	(3.0)
		(940.0)	(643.5)
Total liabilities		(1,028.1)	(895.0)
Net assets		2,000.7	1,583.0

Equity
Share capital	20	62.0	38.7
Share premium account		358.3	46.0
Capital redemption reserve		326.7	326.7
Retained earnings		1,251.9	1,166.0
Investment in own shares	21	1.8	5.6
Total equity		2,000.7	1,583.0

Basic net assets per share (diluted)1	9	494p	520p
EPRA NTA (diluted)1	9	494p	520p
Pro forma net assets per share1		n/a	473p

1. Previous year per share metrics adjusted for the June 2024 rights issue.

Approved by the Board on 20 May 2025 and signed on its behalf by:

Toby Courtauld Nick Sanderson

Chief Executive Chief Financial & Operating Officer

Group statement of cash flows

For the year ended 31 March 2025

	Notes	2025 £m	2024 £m
Operating activities
Operating profit/(loss)		124.1	(294.5)
Adjustments for non-cash items	23	(98.4)	313.4
Decrease/(Increase) in receivables		3.8	(8.6)
Increase in payables		6.2	4.1
Cash generated from operations		35.7	14.4
Interest paid		(40.9)	(22.3)
Interest received		1.5	0.3
Tax paid		(0.3)	-
Cash flows used in operating activities		(4.0)	(7.6)
Investing activities
Repayment of loans by joint ventures		11.6	6.7
Investment in joint ventures		-	(0.1)
Purchase of other investments		(0.8)	(0.8)
Development of investment property		(247.5)	(121.7)
Purchase of investment property		(147.3)	(128.3)
Purchase of plant and equipment		(0.6)	(0.1)
Sale of properties		-	12.6
Cash flows used in investing activities		(384.6)	(231.7)
Financing activities
£450 million revolving credit facility repaid	16	(339.0)	(275.4)
£450 million revolving credit facility drawn	16	442.0	308.4
£150 million revolving credit facility repaid	16	(2.0)	-
£150 million revolving credit facility drawn	16	108.3	-
Term loan (repaid)/drawn	16	(175.0)	248.0
Purchase of derivative	17	-	(2.1)
Private placement notes repaid		(175.0)	-
Issue of sustainable sterling bond		246.2	-
Proceeds from rights issue		350.3	-
Transaction costs of rights issue		(14.7)	-
Purchase of own shares		(5.7)	-
Payment of lease obligations		(1.0)	(3.4)
Dividends paid	24	(31.8)	(32.7)
Cash flows generated from financing activities		402.6	242.8
Net increase in cash and cash equivalents		14.0	3.5
Cash and cash equivalents at 1 April		22.9	19.4
Cash and cash equivalents at 31 March	22	36.9	22.9

Group statement of changes in equity

For the year ended 31 March 2025

	Notes	Share capital £m	Share premium account £m	Capital redemption reserve £m	Retained earnings £m	Investment in own shares £m	Total equity £m
Total equity at 1 April 2024		38.7	46.0	326.7	1,166.0	5.6	1,583.0
Profit for the year		-	-	-	116.0	-	116.0
Actuarial loss on defined benefit scheme	26	-	-	-	(0.8)	-	(0.8)
Deferred tax on defined benefit scheme		-	-	-	0.2	-	0.2
Total comprehensive income for the year		-	-	-	115.4	-	115.4
Proceeds from three for five rights issue		23.3	327.0	-	-	-	350.3
Costs of issue		-	(14.7)	-	-	-	(14.7)
Employee share-based incentive charge	21	-	-	-	-	4.2	4.2
Purchase of own shares	21	-	-	-	-	(5.7)	(5.7)
Dividends to shareholders	24	-	-	-	(31.8)	-	(31.8)
Transfer to retained earnings	21	-	-	-	2.3	(2.3)	-
Total equity at 31 March 2025		62.0	358.3	326.7	1,251.9	1.8	2,000.7

Group statement of changes in equity

For the year ended 31 March 2024

	Notes	Share capital £m	Share premium account £m	Capital redemption reserve £m	Retained earnings £m	Investment in own shares £m	Total equity £m
Total equity at 1 April 2023		38.7	46.0	326.7	1,504.4	2.8	1,918.6
Loss for the year		-	-	-	(307.8)	-	(307.8)
Actuarial gain on defined benefit scheme	26	-	-	-	0.1	-	0.1
Deferred tax on defined benefit scheme		-	-	-	-	-	-
Total comprehensive expense for the year		-	-	-	(307.7)	-	(307.7)
Employee incentive plan charges	21	-	-	-	-	4.0	4.0
Dividends to shareholders	24	-	-	-	(31.9)	-	(31.9)
Transfer to retained earnings	21	-	-	-	1.2	(1.2)	-
Total equity at 31 March 2024		38.7	46.0	326.7	1,166.0	5.6	1,583.0

Notes forming part of the Group financial statements

1 Material accounting policies

Basis of preparation

The financial information contained in this announcement has been prepared on the basis of the accounting policies set out in the financial statements for the year ended 31 March 2025. Whilst the financial information included in this announcement has been prepared in accordance with United Kingdom adopted international accounting standards in conformity with the requirements of the Companies Act 2006, this announcement does not itself contain sufficient information to comply with IFRS. The financial information does not constitute the Company's financial statements for the years ended 31 March 2025 or 2024, but is derived from those financial statements. The auditors' reports on both the 2025 and 2024 financial statements were not qualified or modified.

The financial information set out in this announcement does not constitute the consolidated statutory accounts for the years ended 31 March 2025 or 2024, but is derived from those accounts. Statutory accounts for 2024 have been delivered to the Registrar of Companies and those for 2025 (approved by the Board on 20 May 2025) will be delivered following the Company's annual general meeting.

The Directors are also responsible for keeping adequate accounting records that are sufficient to show and explain the Group's and Company's transactions and disclose with reasonable accuracy at any time the financial position of the Group and Company and enable them to ensure that the financial statements and the Directors' remuneration report comply with the Companies Act 2006.

The financial statements have been prepared on the historical cost basis, except for the revaluation of properties and certain financial instruments which are held at fair value. The consolidated financial statements, including the results and financial position, are expressed in sterling (£), which is the presentation currency of the Group.

The Directors have considered the appropriateness of adopting the going concern basis in preparing the financial statements for the year ended 31 March 2025, with particular focus on the impact of the macro-economic conditions in which the Group is operating. The Directors also considered the Group's net current liability position as at 31 March 2025. The Directors' assessment is based on the next 12 months of the Group's financial forecasts from the date of approval of the Annual Report, including a severe but plausible downside scenario which included the following key assumptions:

- a 13% decline in the valuation of the property portfolio; and

- a 10% decline in estimated rental values.

The severe but plausible downside scenario demonstrates that the Group over the next 12 months:

- has sufficient liquidity to fund its ongoing operations;

- is operating with significant headroom above its Group debt financing covenants;

- property values would have to fall by 20% before breach (or 41% from 31 March 2025 values); and

- earnings before interest and tax would need to fall by 68% before breach (or 87% from 31 March 2025 levels).

The Directors conducted extensive stress testing, sensitising the potential impact of climate change, as detailed further in the viability statement as well as the impact of removing non-committed capital expenditure and sensitising potential disposal proceeds. The Directors also considered the significance of events beyond the 12-month going concern period, including the maturity of the Group's term loan in September 2026, and are confident of the Group's ability to refinance the loan or repay the loan in full at maturity after taking mitigating actions. Based on these considerations, together with available market information and the Directors' knowledge and experience of the Group's property portfolio and markets, the Directors have adopted the going concern basis in preparing the accounts for the year ended 31 March 2025.

The Group has adopted a number of alternative performance measures, see note 9 for further detail.

Critical accounting judgements and key sources of estimation uncertainty

In the process of preparing the financial statements, the Directors are required to make certain judgements, assumptions and estimates. Not all of the Group's accounting policies require the Directors to make difficult, subjective or complex judgements or estimates. Any estimates and judgements made are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Although these estimates are based on the Directors' best knowledge of the amount, event or actions, actual results may differ from those estimates.

No critical judgements have been made.

The following is intended to provide an understanding of the estimates that management consider critical because of the level of complexity, judgement or estimation involved in their application and their material impact on the financial statements.

Key source of estimation uncertainty: investment property portfolio valuation

The valuation to determine the fair value of the Group's investment properties is prepared by its external valuer. The valuation is based upon a number of assumptions and estimations, including future rental income, anticipated capital expenditure, including future development costs and an appropriate discount rate. The valuer also makes reference to market evidence of transaction prices for similar properties. Information about the valuation techniques, significant assumptions and associated key unobservable inputs sensitivity disclosures are disclosed in note 10. An adjustment to any of these assumptions could lead to a material change in the property valuation. For the current year and prior year, the Directors adopted the valuation without adjustment - further information is provided in the accounting policy for investment property and note 10.

New accounting standards

In the current year, the Group has applied a number of amendments to IFRSs that are mandatorily effective for an accounting period that begins on or after 1 January 2024. Their adoption has not had any material impact on the disclosures or on the amounts reported in these financial statements. These new standards and amendments are listed below:

- Amendments to IAS 1 - Presentation of financial statements - classification of liabilities as current or
non-current and non-current liabilities with covenants;

- Amendments to IFRS 8, specifically Operating Segments disclosure following IFRIC agenda decision;

- Amendments to IFRS 16 - Leases - lease liability in a sale and leaseback; and

- Amendments to IAS 7 and IFRS 7 - supplier finance arrangements.

At the date of authorisation of these financial statements, the Group has not applied the following new and revised IFRSs that have been issued but are not yet effective:

- IFRS 18 - Presentation and Disclosure in Financial Statements:

- Amendments to IFRS 9 and IFRS 7 - Amendments to the Classification and Measurement of Financial Instruments;

- IFRS 19 - Subsidiaries without Public Accountability: Disclosures;

- Amendments to IAS 21 - Lack of Exchangeability; and

- Amendments to IFRS 10 and IAS 28 - sale or contribution of assets between an investor and its associate or joint venture.

The Directors do not expect that the adoption of the standards listed above will have a material impact on the financial statements of the Group in future periods, with the exception of IFRS 18, where the Directors are still assessing its potential impact.

Basis of consolidation

The Group's financial statements consolidate the financial statements of the Company and all its subsidiary undertakings for the year ended 31 March 2025. Subsidiary undertakings are those entities controlled by the Group. Control exists when the Company is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the investee.

Revenue

Gross rental income comprises rental income and premiums on lease surrenders on investment properties for the year, exclusive of service charges receivable, on a straight-line basis. Initial direct costs incurred in arranging a lease are added to the carrying value of investment properties and are subsequently recognised as an expense over the lease term on the same basis as the lease income.

Lease incentives, including rent-free periods and payments to customers, are allocated to the income statement on a straight-line basis over the lease term or on another systematic basis, if applicable. The value of resulting accrued rental income is included within the respective property, with the aggregate cost of the incentive recognised as a reduction in rental income on a straight-line basis over the term of the lease.

Revenue from Fully Managed spaces is split between an amount attributable to the rent on a fitted basis and services income as set out in the lease agreement, which is based on stand-alone selling prices. Where the lease agreement does not provide an attribution, the Group splits the revenue based on the ERV of the fitted rent, which represents the stand-alone selling price. The rent is recognised in gross rental income (see above) and the services income is recorded over the period when the services are provided and benefit the customer.

The Group's Flex Partnerships represent leases with third-party operators where the rent payable is calculated by reference to the profitability of the space under management. The rent is recognised in gross rental income (see above).

Service charge income is recorded over the period when the services are provided and benefit the customer.

Cost of sales

Service charge expenses represent the costs of operating the Group's portfolio and are expensed as incurred.

Fully Managed service costs represent the costs of operating the Group's Fully Managed spaces and are expensed as incurred.

Other property expenses represent irrecoverable running costs directly attributable to specific properties within the Group's portfolio. Costs incurred in the improvement of the portfolio which, in the opinion of the Directors, are not of a capital nature are written-off to the income statement as incurred.

Administration expenses

Costs not directly attributable to individual properties are treated as administration expenses.

Share-based payments

The cost of granting share-based payments to employees and Directors is recognised within administration expenses in the income statement. The Group has used the stochastic model to fair value LTIP grants, which is dependent upon factors including the share price, expected volatility and vesting period. The fair value of the RSP is based on the share price at grant date. The resulting fair value is amortised through the income statement over the vesting period. The charge is recognised over the vesting period and reversed if it is likely that any non-market-based performance or service criteria will not be met. Any cost in respect of share-based payments relating to the employees of a subsidiary company is recharged accordingly.

Investment property

Both leasehold and freehold investment properties and investment properties under development are professionally valued on a fair value basis by qualified external valuers, and the Directors must ensure that they are satisfied that the valuation of the Group's properties is appropriate for inclusion in the accounts without adjustment. The valuation of the property portfolio reflects its fair value taking into account the market view of all relevant factors, including the climate-related risks associated with the properties. This includes the impact of expected regulatory changes.

The valuations have been prepared in accordance with the current versions of the RICS Valuation - Global Standards (incorporating the International Valuation Standards (IVS)) and the UK national supplement (the Red Book) and have been primarily derived using comparable recent market transactions on arm's length terms.

For investment property, this approach involves applying market-derived capitalisation yields to current and market-derived future income streams with appropriate adjustments for income voids arising from vacancies or rent-free periods.

These capitalisation yields and future income streams are derived from comparable property and leasing transactions and are considered to be the key inputs in the valuation. Other factors that are taken into account in the valuations include the tenure of the property, tenancy details, non-payment of rent, planning, building and environmental factors that might affect the property.

An investment property will be classified as held for sale where it is available for immediate sale in its present condition and the sale is highly probable.

In the case of investment property under development, the approach applied is the 'residual method' of valuation, which is the investment method of valuation as described above with a deduction for the costs necessary to complete the development, together with an allowance for the remaining risk.

The Group recognises sales and purchases of property when control passes on completion of the contract. Gains or losses on the sale of properties are calculated by reference to the carrying value at the end of the previous year, adjusted for subsequent capital expenditure.

Lease obligations

Where the Group is a lessee, a right of use asset and lease liability are recognised at the outset of the lease. The lease liability is initially measured at the present value of the lease payments based on the Group's expectations of the likelihood of the lease term. The lease liability is subsequently adjusted to reflect an imputed finance charge, payments made to the lessor and any lease modifications.

The right of use asset is initially measured at cost, which comprises the amount of the lease liability and direct costs incurred, less any lease incentives received by the Group. The Group has two categories of right of use assets: those in respect of head leases related to its leasehold properties; and an occupational lease for its head office. The right of use asset in respect of head leases is classified as investment property and is added to the carrying value of the leasehold investment property. The right of use asset in respect of its occupational leases is classified as property, plant and equipment and is subsequently depreciated over the length of the lease.

Depreciation

No depreciation is provided in respect of freehold investment properties and leasehold investment properties. Plant and equipment is held at cost less accumulated depreciation. Depreciation is provided on plant and equipment, at rates calculated to write off the cost, less residual value prevailing at the balance sheet date of each asset evenly over its expected useful life, as follows:

Fixtures and fittings - over three to five years.

Leasehold improvements - over the term of the lease.

Joint ventures

Joint ventures are accounted for under the equity method where, in the Directors' judgement, the Group has joint control of the entity. The Group's level of control in its joint ventures is driven both by the individual agreements which set out how control is shared by the partners and how that control is exercised in practice. The Group balance sheet contains the Group's share of the net assets of its joint ventures. Balances with partners owed to or from the Group by joint ventures are included within investments. The Group's share of joint venture profits and losses are included in the Group income statement in a single line. All of the Group's joint ventures adopt the accounting policies of the Group for inclusion in the Group financial statements. There have been no new joint ventures during the year and no changes to any of the agreements in place.

Income tax

Current tax is the amount payable on the taxable income for the year and any adjustment in respect of previous years. Deferred tax is provided in full on temporary differences between the tax base of an asset or liability and its carrying amount in the balance sheet. Deferred tax is determined using tax rates that have been enacted or substantively enacted by the balance sheet date and are expected to apply when the asset is realised or the liability is settled. Deferred tax assets are recognised when it is probable that taxable profits will be available against which the deferred tax assets can be utilised. No provision is made for temporary differences arising on the initial recognition of assets or liabilities that affect neither accounting nor taxable profit, with the exception of leases. Tax is included in the income statement except when it relates to items recognised directly in other comprehensive income or equity, in which case the related tax is also recognised directly in other comprehensive income or equity.

Pension benefits

The Group contributes to a defined benefit pension plan which is funded with assets held separately from those of the Group. The full value of the net assets or liabilities of the pension fund is brought onto the balance sheet at each balance sheet date. Actuarial gains and losses are taken to other comprehensive income; all other movements are taken to the income statement.

Capitalisation of interest

Interest associated with direct expenditure on investment and trading properties under development and refurbishment is capitalised. Direct expenditure includes the purchase cost of a site if it has been purchased with the specific intention to redevelop, but does not include the original book cost of a site where no intention existed. Interest is capitalised from the start of the development work until the date of practical completion. The rate used is the Group's weighted average cost of borrowings or, if appropriate, the rate on specific associated borrowings.

Other investments

Other investments comprise investments in Pi Labs European PropTech venture capital fund, which is measured at fair value, based on the net assets of the fund; this is a Level 3 valuation as defined by IFRS 13. Changes in fair value are recognised in profit or loss.

Financial instruments

i Borrowings The Group's borrowings in the form of its debentures, private placement notes and bank loans are recognised initially at fair value, after taking account of any discount or premium on issue and attributable transaction costs. Subsequently, borrowings are held at amortised cost, with any discounts, premiums and attributable costs charged to the income statement using the effective interest rate method.

ii Cash and cash equivalents Cash and cash equivalents comprise cash in hand, demand deposits and other short-term highly liquid investments that are readily convertible into a known amount of cash and are subject to insignificant risk
of changes in value.

iii Trade receivables and payables Trade receivables are initially measured at the transaction price, and are subsequently measured at amortised cost using the effective interest rate method. See note 14 for further information on trade receivables and associated expected credit losses. Trade payables are initially measured at fair value and subsequently measured at amortised cost.

iv Derivative financial instruments The Group uses derivatives (principally interest rate caps) in managing interest rate risk, and does not use them for trading. They are recorded, and subsequently revalued, at fair value, with revaluation gains or losses being immediately taken to the income statement. Derivatives with a maturity of less than 12 months or that expect to be settled within 12 months of the balance sheet date are presented as current assets or liabilities. Other derivatives are presented as non-current assets or liabilities.

2 Segmental analysis

IFRS 8 Operating Segments requires the identification of operating segments based on internal financial reports detailing components of the Group regularly reviewed by the chief operating decision makers (the Group's Executive Committee) in order to allocate resources to the segments and to assess their performance.

The Directors have concluded that, based on the level of information provided to the Executive Committee, that its Fully Managed operations is an operating segment as defined by IFRS 8. Furthermore, given the revenue is in excess of 10% of wider Group revenue, the segment should be separately reported from the remainder of the Group's activities.

The remainder of the Group's components are managed together, with their operating results reviewed on an aggregated basis. All of the Group's revenue is generated from investment properties located in a small radius within central London. The properties are managed as a single portfolio by a Portfolio Management team whose responsibilities are not segregated by location or type but are managed on an asset-by-asset basis. The majority of the Group's assets are mixed-use, therefore the office, retail and any residential space are managed together. The Directors have considered the nature of the business, how the business is managed and how they review performance, and in their judgement, the Group has only two reportable segments.

The Executive Committee reviews the performance of its Fully Managed offer based on gross revenue (including Fully Managed services income) net of cost of sales on a proportionally consolidated basis (including the Group's joint ventures at share). Total assets and liabilities are not monitored by segment.

Segmental analysis for the year ended 31 March 2025

	Fully Managed offices including joint ventures £m	Joint ventures £m	Group Fully Managed offices £m	Remainder of portfolio £m	Total 2025 £m
Revenue	20.6	(1.8)	18.8	75.4	94.2
Cost of sales	(11.3)	0.5	(10.8)	(24.3)	(35.1)
Net result	9.3	(1.3)	8.0	51.1	59.1

Group Fully Managed office revenue includes £0.3 million (2024: £nil) in respect of spreading of lease incentives.

Segmental analysis for the year ended 31 March 2024

	Fully Managed offices including joint ventures £m	Joint ventures £m	Group Fully Managed offices £m	Remainder of portfolio £m	Total 2024 £m
Revenue	13.6	(1.4)	12.2	83.2	95.4
Cost of sales	(8.6)	0.5	(8.1)	(25.2)	(33.3)
Net result	5.0	(0.9)	4.1	58.0	62.1

3 Revenue

	2025 £m	2024 £m
Gross rental income	69.4	67.2
Spreading of lease incentives	(1.4)	5.7
Service charge income	12.8	14.4
Fully Managed services income	10.9	6.4
Joint venture fee income	2.5	1.7
	94.2	95.4

The table below sets out the Group's gross rental income split between types of space provided:

	2025 £m	2024 £m
Ready to Fit	36.4	37.9
Retail	11.8	10.5
Fitted	7.9	6.8
Fully Managed	7.6	5.8
Flex Partnerships	3.0	3.8
Hotel	2.7	2.4
	69.4	67.2

The table below sets out the Group's net rental income, which is an alternative performance measure (see note 9):

	2025 £m	2024 £m
Gross rental income	69.4	67.2
Expected credit loss	(0.1)	(0.2)
Rental income	69.3	67.0
Spreading of lease incentives	(1.4)	5.7
Ground rent	(0.6)	(0.6)
Net rental income	67.3	72.1

4 Cost of sales

	2025 £m	2024 £m
Service charge expenses	16.5	17.7
Fully Managed service expenses	10.8	8.1
Other property expenses	7.2	6.9
Ground rent	0.6	0.6
	35.1	33.3

The table below sets out the Group's property costs, which is an alternative performance measure (see note 9):

	2025 £m	2024 £m
Service charge income	(12.8)	(14.4)
Service charge expenses	16.5	17.7
Fully Managed services income	(10.9)	(6.4)
Fully Managed services expenses	10.8	8.1
Other property expenses	7.2	6.9
Expected credit loss/(recovery)	0.1	(0.1)
Property costs	10.9	11.8

5 Administration expenses

	2025 £m	2024 £m
Employee costs	29.7	30.9
Depreciation (see note 12)	1.7	1.6
Other head office costs	8.6	9.8
	40.0	42.3

Included within employee costs is an accounting charge for the Employee Long Term Incentive Plan and deferred bonus shares of £4.2 million (2024: £4.0 million). Employee costs, including those of Directors, comprise the following:

	2025 £m	2024 £m
Wages and salaries (including annual bonuses)	24.2	24.4
Share-based payments	4.0	4.1
Social security costs	4.0	3.7
Other pension costs	2.1	2.4
	34.3	34.6
Less: recovered through service charges	(2.0)	(1.9)
Less: capitalised into development projects	(2.1)	(1.8)
Less: Fully Managed staff costs	(0.5)	-
	29.7	30.9

Key management compensation

The Directors and the Executive Committee are considered to be key management for the purposes of IAS 24 - Related Party Transactions with their aggregate compensation set out below:

	2025 £m	2024 £m
Wages and salaries (including annual bonuses)	6.4	6.8
Share-based payments	1.9	1.9
Social security costs	1.1	1.1
Other pension costs	0.4	0.5
	9.8	10.3

The number of people considered key management totalled 15 (2024: 17). The Group had loans to key management of £nil (2024: £2,880) outstanding at 31 March 2025. The Group's key management, its pension plan and joint ventures are the Group's only related parties.

Employee information

The monthly average number of employees of the Group, including Directors, was:

	2025 Number	2024 Number
Head office and property management	158	150

Auditor's remuneration

	2025 £000	2024 £000
Audit of the Group and Company's annual accounts	345	394
Audit of subsidiaries	111	107
	456	501
Audit-related assurance services, including the interim review	63	61
Reporting accountant fees - rights issue and issue of £250.0 million sustainable sterling bond	308	-
Sustainability assurance	73	68
Auditor's remuneration	900	630

6 Finance income

	2025 £m	2024 £m
Interest income on joint venture balances	5.7	5.8
Interest on cash deposits	1.5	0.3
	7.2	6.1

7 Finance costs

	2025 £m	2024 £m
Interest on revolving credit facilities	7.3	5.8
Interest on term loan	12.8	8.5
Interest on private placement notes	7.6	11.0
Interest on sustainable sterling bond	7.2	-
Interest on debenture stock	1.2	1.2
Interest on obligations under head leases	3.1	2.4
Other	0.4	0.1
Gross finance costs	39.6	29.0
Less: capitalised interest	(26.5)	(11.3)
	13.1	17.7

The Group capitalised interest on certain developments with specific associated borrowings at 6.9% (2024: 6.8%), with the remainder at the Group's weighted average cost of non-specific borrowings of 4.6% (2024: 3.5%).

8 Tax

	2025 £m	2024 £m
Current tax
UK corporation tax - current period	1.6	-
UK corporation tax - prior periods	-	-
Total current tax	1.6	-
Deferred tax	0.2	-
Tax charge for the year	1.8	-

The effective rate of tax is lower (2024: lower) than the standard rate of tax. The difference arises from the items set out below:

	2025 £m	2024 £m
Profit/(loss) before tax	117.8	(307.8)
Tax charge/(credit) on profit/(loss) at standard rate of 25% (2024: 25%)	29.5	(77.0)
REIT tax exempt rental profits and gains	(7.9)	(7.4)
Changes in fair value of properties not subject to tax	(24.5)	80.5
Other	4.7	3.9
Tax charge for the year	1.8	-

The Group complied with all the requirements necessary to maintain its REIT status throughout the year. If our REIT interest cover is below 1.25x each year, we are subject to corporation tax on the shortfall. During the year, our REIT interest cover was below 1.25x and as a result we incurred a current tax charge of £1.6 million (2024: £nil).

During the year, £0.2 million (2024: £nil) of deferred tax was credited directly to equity. The Group recognised a net deferred tax asset at 31 March 2025 of £nil (2024: £nil). This consists of deferred tax assets of £1.4 million (2024: £1.6 million) and deferred tax liabilities of £1.4 million (2024: £1.6 million).

Deferred tax is calculated using tax rates that have been enacted or substantively enacted at the balance sheet date.

Movement in deferred tax

At 1 April
2024
£m

Recognised
in the income
statement
£m

Recognised
in equity
£m

At 31 March
2025
£m

Net deferred tax (liability)/asset in respect of other temporary differences

(0.2)

0.2

The Group has not recognised further deferred tax assets in respect of gross temporary differences arising from the following items, because it is uncertain whether future taxable profits will arise against which these assets can be utilised:

	2025 £m	2024 £m
Revenue losses	32.4	24.6
Share-based payments	7.8	8.4
Other	1.5	1.3
	41.7	34.3

As a REIT, the majority of rental profits and chargeable gains from the Group's property rental business are exempt from UK corporation tax. The Group is otherwise subject to corporation tax. In particular, the Group's REIT exemption does not extend to either profits arising from the sale of trading properties or gains arising from the sale of investment properties in respect of which a major redevelopment has completed within the preceding three years.

In order to ensure that the Group is able to both retain its status as a REIT and avoid financial charges being imposed, a number of tests (including a minimum distribution test) must be met by both Great Portland Estates plc and by the Group as a whole on an ongoing basis. These conditions are detailed in the Corporation Tax Act 2010.

The Group has assessed the impact of the Pillar Two tax legislation, which came into effect on 1 January 2024. The Group does not meet the minimum thresholds for the legislation to apply for the year ended 31 March 2025 and expects this to remain the case for the foreseeable future. All entities within the Group are UK tax resident.

9 Earnings per share, alternative performance measures and EPRA metrics

As is usual practice in our sector, we use alternative performance measures (APMs) to help explain the performance of the business. These include quoting a number of measures on a proportionally consolidated basis to include joint ventures, as it best describes how we manage the portfolio, and using measures prescribed by the European Public Real Estate Association (EPRA). The measures defined by EPRA are designed to enhance transparency and comparability across the European real estate sector in accordance with its Best Practice Recommendations (BPR). The Directors consider these EPRA metrics, and the other metrics provided, to be the most appropriate method of reporting the value and performance of the business. During the year, EPRA updated its BPR guidelines to incorporate changes to EPRA earnings effective for reporting periods starting after 1 October 2024. The Directors have adopted the revised guidelines early in the current financial year.

In June 2024, the Company issued 152,320,747 new shares through a rights issue (see note 20). To reflect the rights issue, the comparative number of shares previously used to calculate the basic and diluted per share data has been restated in the below earnings and net asset value per share calculations. In accordance with IAS 33 - Earnings per share, an adjustment factor of 1.20 has been applied to the comparative number of shares based on the ratio of the Company's closing share price of 414.6 pence per share on 22 May 2024, being the day prior to the announcement of the rights issue (adjusted for the recommended final dividend for the year ended 31 March 2024) and the theoretical ex-rights price at that date of 345.4 pence per share.

Earnings per share

Weighted average number of ordinary shares

	2025 Number of shares	2024 Restated Number of shares
Issued ordinary share capital at 1 April	253,867,911	253,867,911
Rights issue	132,033,365	50,883,840
Investment in own shares	(1,816,870)	(1,064,976)
Weighted average number of ordinary shares at 31 March - basic	384,084,406	303,686,775

Basic and diluted earnings per share

	Profit after tax 2025 £m	Number of shares 2025 million	Profit per share 2025 pence	Loss after tax 2024 £m	Restated number of shares 2024 million	Restated loss per share 2024 pence
Basic	116.0	384.1	30.2	(307.8)	303.7	(101.4)
Dilutive effect of LTIP shares	-	0.9	(0.1)	-	-	-
Diluted	116.0	385.0	30.1	(307.8)	303.7	(101.4)

Basic and diluted EPRA earnings per share (EPS)

	Earnings/(loss) after tax 2025 £m	Number of shares 2025 million	Earnings/(loss) per share 2025 pence	(Loss)/ Earnings after tax 2024 £m	Restated number of shares 2024 million	Restated (loss)/ earnings per share 2024 pence
Basic	116.0	384.1	30.2	(307.8)	303.7	(101.4)
(Surplus)/deficit from investment property net of tax (note 10)	(83.2)	-	(21.6)	267.3	-	88.0
(Surplus)/deficit from joint venture investment property (note 11)	(14.5)	-	(3.7)	56.5	-	18.6
Debt cancellation costs (note 16)	0.7	-	0.2	-	-	-
Deficit on revaluation of derivatives (note 17)	0.4	-	0.1	1.7	-	0.6
Deficit on revaluation of other investments (note 13)	0.4	-	0.1	0.2	-	0.1
Deferred tax in respect of adjustments (note 8)	0.2	-	-	-	-	-
Exceptional item: IT transformation costs	0.2	-	-	-	-	-
Basic EPRA earnings	20.2	384.1	5.3	17.9	303.7	5.9
Dilutive effect of LTIP shares (note 21)	-	0.9	(0.1)	-	0.1	-
Diluted EPRA earnings	20.2	385.0	5.2	17.9	303.8	5.9

During the year, the Group commenced an IT transformation project to replace the Group's finance and property management system. The cost of this project has been excluded from EPRA EPS in accordance with the EPRA Best Practices Recommendations September 2024.

Cash earnings per share

	Profit after tax 2025 £m	Number of shares 2025 million	Earnings per share 2025 pence	Profit after tax 2024 £m	Restated number of shares 2024 million	Restated earnings per share 2024 pence
Diluted EPRA earnings	20.2	385.0	5.2	17.9	303.8	5.9
Capitalised interest	(26.5)	-	(6.9)	(11.3)	-	(3.7)
Spreading of lease incentives	1.0	-	0.3	(5.7)	-	(1.9)
Spreading of lease incentives in joint ventures	2.4	-	0.7	(1.4)	-	(0.4)
Capitalised interest in joint ventures	(0.2)	-	(0.1)	-	-	-
Employee incentive plan charges	4.2	-	1.1	4.0	-	1.3
Cash earnings per share	1.1	385.0	0.3	3.5	303.8	1.2

Net assets per share

The Group has adopted EPRA's Best Practice Recommendations for Net Asset Value (NAV) metrics. The recommendations include three NAV metrics: EPRA Net Tangible Assets (NTA), Net Reinvestment Value (NRV) and Net Disposal Value (NDV). We consider EPRA NTA to be the most relevant measure for the Group and the primary measure of IFRS net asset value; definitions are included in the glossary.

In addition, we have presented a pro forma net assets per share, which restates the 31 March 2024 balance sheet, to include the net proceeds and new shares issued as a result from the rights issue. We consider the pro forma net assets per share to be a more appropriate metric to benchmark performance over the year, given it is based on balance sheet values rather than share price derived metrics.

Number of ordinary shares

	2025 Number of shares	2024 Restated number of shares
Issued ordinary share capital	253,867,911	253,867,911
Rights issue	152,320,747	50,883,840
Investment in own shares	(2,893,542)	(1,064,976)
Number of shares - basic	403,295,116	303,686,775
Dilutive effect of LTIP shares	1,472,577	676,992
Number of shares - diluted	404,767,693	304,363,767

EPRA net assets per share at 31 March 2025

	IFRS £m	EPRA NTA £m	EPRA NDV £m	EPRA NRV £m
IFRS basic and diluted net assets	2,000.7	2,000.7	2,000.7	2,000.7
Fair value of derivative financial instruments	-	-	-	-
Fair value of financial liabilities (note 17)	-	-	46.5	-
Real estate transfer tax	-	-	-	209.3
Net assets used in per share calculations	2,000.7	2,000.7	2,047.2	2,210.0

	IFRS pence	EPRA NTA pence	EPRA NDV pence	EPRA NRV pence
Net assets per share (pence)	496	496	508	548
Diluted net assets per share (pence)	494	494	506	546

EPRA net assets per share at 31 March 2024

	IFRS £m	EPRA NTA £m	EPRA NDV £m	EPRA NRV £m
IFRS basic and diluted net assets	1,583.0	1,583.0	1,583.0	1,583.0
Fair value of derivative financial instruments	-	(0.4)	-	(0.4)
Fair value of financial liabilities (note 17)	-	-	50.7	-
Real estate transfer tax	-	-	-	170.1
Net assets used in per share calculations	1,583.0	1,582.6	1,633.7	1,752.7

	Restated IFRS pence	Restated EPRA NTA pence	Restated EPRA NDV pence	Restated EPRA NRV pence
Net assets per share (pence)	521	521	538	577
Diluted net assets per share (pence)	520	520	537	576

Pro forma net assets per share

The prior year's NTA, adjusted for the impact of the new equity raised as a result of the rights issue is as follows:

	31 March 2024 Restated as above	Share adjustment per IAS 33	31 March 2024 as disclosed	Net proceeds from rights issue	31 March 2024 Pro forma
EPRA net assets (£m)	1,582.6	-	1,582.6	335.6	1,918.2
Number of shares (million) - diluted	304.4	(50.9)	253.5	152.3	405.8

Diluted net assets per share (pence)	520		624		473

Total Accounting Return (TAR)

	2025 £m	2024 £m
Opening EPRA net assets	1,582.6	1,918.6
Adjusted for rights issue	335.6	-
Restated opening EPRA net assets (A)	1,918.2	1,918.6
Closing net assets	2,000.7	1,582.6
Increase/(decrease) in net assets	82.5	(336.0)
Ordinary dividends paid in the year	31.8	31.9
Total return (B)	114.3	(304.1)

Total Accounting Return (B/A)	6.0%	(15.9%)

EPRA loan-to-property value and net debt

We consider loan-to-property value, including our share of joint ventures, to be the best measure of the Group's risk from financial leverage. We also present net gearing as it is a key covenant on our loan facilities (see note 16).

	2025 £m	2024 £m
£21.9 million 55⁄8% debenture stock 2029	21.9	21.9
£450.0 million revolving credit facility	150.0	47.0
£150.0 million revolving credit facility	107.0	-
£75.0 million term loan 2026 (2024: £250.0 million)	75.0	250.0
£250.0 million 5.375% sustainable sterling bond 2031	250.0	-
Private placement notes	250.0	425.0
Less: cash and cash equivalents	(36.9)	(22.9)
Group net debt	817.0	721.0
Net payables (including customer rent deposits)	72.4	54.6
Group net debt including net payables	889.4	775.6
Joint venture net payables (at share)	9.5	10.5
Less: joint venture cash and cash equivalents (at share)	(15.9)	(25.7)
Net debt including joint ventures (A)	883.0	760.4

Group properties at market value	2,368.5	1,855.1
Joint venture properties at market value (at share)	500.8	476.1
Property portfolio at market value including joint ventures (B)	2,869.3	2,331.2

EPRA loan-to-property value (A/B)	30.8%	32.6%

Group cash and cash equivalents includes customer rent deposits held in separate designated bank accounts of £18.7 million (2024: £17.0 million), the use of the deposits is subject to restrictions as set out in the customer's lease agreement and therefore not available for general use by the Group.

EPRA cost ratio (including share of joint ventures)

	2025 £m	2024 £m
Administration expenses	40.0	42.3
Net property costs (excluding Fully Managed services income and costs)	11.0	10.1
Joint venture management fee income (excluding Fully Managed services income and costs, note 3)	(2.5)	(1.7)
Joint venture property and administration costs (note 11)	3.1	3.6
EPRA costs (including direct vacancy costs) (A)	51.6	54.3
Direct vacancy costs	(6.9)	(5.1)
Joint venture direct vacancy cost	(1.3)	(2.2)
EPRA costs (excluding direct vacancy costs) (B)	43.4	47.0

Net rental income (note 3)	67.3	72.1
Joint venture net rental income (note 11)	15.9	19.4
Gross rental income (C)	83.2	91.5

Portfolio at fair value including joint ventures (D)	2,869.3	2,331.2

Cost ratio (including direct vacancy costs) (A/C)	62.0%	59.3%
Cost ratio (excluding direct vacancy costs) (B/C)	52.1%	51.4%
Cost ratio (by portfolio value) (A/D)	1.8%	2.3%

Net gearing

	2025 £m	2024 £m
Nominal value of interest-bearing loans and borrowings (see note 16)	853.9	743.9
Obligations under occupational leases (note 19)	-	1.0
Less: cash and cash equivalents (unrestricted) (note 22)	(18.2)	(5.9)
Adjusted net debt (A)	835.7	739.0

Net assets	2,000.7	1,583.0
Pension scheme asset (note 26)	(4.8)	(4.9)
Adjusted net equity (B)	1,995.9	1,578.1

Net gearing (A/B)	41.9%	46.8%

10 Investment property

Investment property

	Freehold £m	Leasehold £m	Total £m
Book value at 1 April 2023	883.5	925.0	1,808.5
Costs capitalised	28.0	57.3	85.3
Movement in lease incentives	7.8	(0.4)	7.4
Interest capitalised	2.2	2.6	4.8
Acquisitions	128.3	-	128.3
Disposals	(5.8)	(8.4)	(14.2)
Transfer to investment property under development	(50.1)	(59.6)	(109.7)
Transfer to investment property held for sale	-	(18.2)	(18.2)
Net valuation deficit on investment property	(108.8)	(106.0)	(214.8)
Book value at 31 March 2024	885.1	792.3	1,677.4
Costs capitalised	55.3	53.5	108.8
Movement in lease incentives	0.3	(0.9)	(0.6)
Interest capitalised	2.4	3.5	5.9
Acquisitions	57.3	122.9	180.2
Disposals	-	(0.5)	(0.5)
Net valuation surplus on investment property	36.7	42.5	79.2
Book value at 31 March 2025 (A)	1,037.1	1,013.3	2,050.4

Investment property under development

	Freehold £m	Leasehold £m	Total £m
Book value at 1 April 2023	-	113.7	113.7
Costs capitalised	-	54.6	54.6
Interest capitalised	-	6.5	6.5
Transfer from investment property	50.1	59.6	109.7
Net valuation deficit on investment property under development	-	(50.9)	(50.9)
Book value at 31 March 2024	50.1	183.5	233.6
Costs capitalised	23.6	123.0	146.6
Interest capitalised	4.7	15.9	20.6
Net valuation (deficit)/surplus on investment property under development	(8.3)	12.6	4.3
Book value at 31 March 2025 (B)	70.1	335.0	405.1
Book value of investment property & investment property under development (A+B)	1,107.2	1,348.3	2,455.5

Investment property held for sale

	Freehold £m	Leasehold £m	Total £m
Book value at 1 April 2023 and 31 March 2024	-	18.2	18.2
Disposals	-	(18.2)	(18.2)
Book value of investment property held for sale at 31 March 2025 (C)	-	-	-

Book value of total investment property at 31 March 2025 (A+B+C)	1,107.2	1,348.3	2,455.5

The book value of investment property includes £87.0 million (2024: £74.1 million) in respect of the present value of future ground rents. The market value of the portfolio (excluding these amounts) is £2,368.5 million. The total portfolio value including joint venture properties of £500.8 million (see note 11) was £2,869.3 million. At 31 March 2025, property with a carrying value of £114.8 million (2024: £107.0 million) was secured under the first mortgage debenture stock (see note 16).

Surplus from investment property

	2025 £m	2024 £m
Net valuation surplus/(deficit) on investment property	83.5	(265.7)
Loss on sale of investment properties	(0.3)	(1.6)
	83.2	(267.3)

The Group's investment properties, including those held in joint ventures (note 11), were valued on the basis of fair value by CBRE Limited (CBRE), external valuers, as at 31 March 2025. The valuations have been prepared in accordance with the current versions of the RICS Valuation - Global Standards (incorporating the International Valuation Standards (IVS)) and the UK national supplement (the Red Book) and have been primarily derived using comparable recent market transactions on arm's length terms. In accordance with the updated RICS UK supplement of its 'Red Book', which introduces a mandatory rotation cycle for its valuers, CBRE will rotate off following their final valuation of the portfolio at 31 March 2026. A process is underway to select their successor.

The total fees, including the fixed fee for this assignment, earned by CBRE (or other companies forming part of the same group of companies within the UK) from the Group are less than 5.0% of its total UK revenues. CBRE has carried out valuation instructions, agency and professional services on behalf of the Group for in excess of 20 years.

Real estate valuations are complex and derived using comparable market transactions which are not publicly available and involve an element of judgement. Therefore, we have classified the valuation of the property portfolio as Level 3 as defined by IFRS 13; this is in line with EPRA guidance. There were no transfers between levels during the year. Inputs to the valuation, including capitalisation yields (typically the true equivalent yield) and rental values, are defined as 'unobservable' as defined by IFRS 13.

Everything else being equal, there is a positive relationship between rental values and the property valuation, such that an increase in rental values will increase the valuation of a property and a decrease in rental values will reduce the valuation of the property. Any percentage movement in rental values will translate into approximately the same percentage movement in the property valuation. However, due to the long-term nature of leases, where the passing rent is fixed and often subject to upwards only rent reviews, the impact will not be immediate and will be recognised over a number of years. The relationship between capitalisation yields and the property valuation is negative and more immediate; therefore, an increase in capitalisation yields will reduce the valuation of a property and a reduction will increase its valuation. There is a negative relationship between development costs and the property valuation, such that an increase in estimated development costs will decrease the valuation of a property under development and a decrease in estimated development costs will increase the valuation of a property under development. There are interrelationships between these inputs as they are determined by market conditions, and the valuation movement in any one period depends on the balance between them. If these inputs move in opposite directions (i.e. rental values increase and yields decrease), valuation movements can be amplified, whereas if they move in the same direction, they may offset, reducing the overall net valuation movement.

An increase of 10% on the capital expenditure on the Group's three HQ development schemes and four Fully Managed conversion schemes, which the Directors believe is a reasonable variance to budgeted costs based on industry experience, would reduce the valuation by £35.7 million (31 March 2024: £49.8 million), with a decrease of 10% increasing the valuation by £35.7 million (31 March 2024: £49.8 million).

A decrease in the capitalisation yield by 25 basis points would result in an increase in the fair value of the Group's investment property by £112.1 million (£137.4 million including a share of joint ventures) compared to a £203.2 million based on a 50 basis point movement at 31 March 2024. A 25 basis point increase would reduce the fair value by £102.4 million (£125.4 million including a share of joint ventures) compared to a £166.7 million based on a 50 basis point movement at 31 March 2024. A movement of 12 basis points was shown across the portfolio over the last 12 months and a 25 basis point movement is therefore considered to be a reasonably possible change. Given there is only a marginal difference in the overall yields for office and retail and the movement in year, we feel this sensitivity to be appropriate.

The valuation of the property portfolio reflects its fair value taking into account the climate-related risks associated with the properties. This includes the impact of expected regulatory changes, and we estimate that the investment required to upgrade our existing buildings to the new minimum EPC B rating by 2030 is less than £10 million (£10 million including share of joint ventures (2024: £10 million and £10 million respectively)), over and above specific refurbishment and development assumptions included in the valuation.

During the year, the Group capitalised £2.1 million (2024: £1.8 million) of employee costs in respect of its development team into investment properties under development. At 31 March 2025, the Group had capital commitments of £359.7 million (2024: £502.3 million).

Key inputs to the valuation (by building and location) at 31 March 2025

		ERV		True equivalent yield
		Average £ per sq ft	Range £ per sq ft	Average %	Range %
North of Oxford Street	Office	117	56 - 221	5.6	4.9 - 7.7
	Retail	67	34 - 150	5.3	4.6 - 10.6
Rest of West End	Office	162	70 - 267	5.2	4.5 - 7.6
	Retail	109	15 - 323	4.9	4.5- 6.8
City, Midtown and Southwark	Office	89	35 - 197	5.8	5.0 - 7.3
	Retail	30	26 - 36	5.6	5.0 - 6.5

Key inputs to the valuation (by building and location) at 31 March 2024

		ERV		True equivalent yield
		Average £ per sq ft	Range £ per sq ft	Average %	Range %
North of Oxford Street	Office	102	74 - 174	5.3	4.8 - 7.3
	Retail	67	34 - 110	5.3	4.5 - 10.0
Rest of West End	Office	143	70 - 249	5.8	5.0 - 7.3
	Retail	115	15 - 295	5.0	3.2 - 6.8
City, Midtown and Southwark	Office	83	47 - 173	5.7	5.4 - 7.3
	Retail	36	25 - 36	5.9	5.5 - 6.7

EPRA capital expenditure (alternative performance measure)

	2025 £m	2024 £m
Group
Acquisitions (note 10)	180.2	128.3
Developments (note 10)	146.6	54.6
Interest capitalised (note 7)	26.5	11.3
Investment properties: incremental lettable space	-	-
Investment properties: no incremental lettable space (note 10)	108.8	85.3
Movement in lease incentives (note 10)	(0.6)	7.4
Group total	461.5	286.9

Joint ventures (at share, note 10)
Developments	-	-
Interest capitalised (note 9)	0.2	-
Investment properties: incremental lettable space	-	-
Investment properties: no incremental lettable space	11.5	5.7
Movement in lease incentives	(1.5)	2.4
Total capital expenditure	471.7	295.0
Conversion from accrual to cash basis	(7.7)	(12.0)
Total capital expenditure on a cash basis	464.0	283.0

EPRA net initial yield (NIY) and topped-up NIY (alternative performance measure)

	2025 £m	2024 £m
Properties at fair value including joint ventures	2,869.3	2,331.2
Less: properties under development including joint ventures	(372.9)	(201.5)
Less: residential properties	(6.8)	(4.7)
Like-for-like investment property portfolio, proposed and completed developments	2,489.6	2,125.0
Plus: estimated purchasers' costs	181.6	155.0
Grossed-up completed property portfolio valuation (B)	2,671.2	2,280.0
Annualised cash passing rental income1	84.7	85.9
Net service charge expense including joint ventures	(4.9)	(5.1)
Other irrecoverable property costs including joint ventures	(8.9)	(7.9)
Annualised net rents (A)	70.9	72.9
Plus: rent-free periods and other lease incentives including joint ventures	16.0	3.9
Topped-up annualised net rents (C)	86.9	76.8

EPRA net initial yield (A/B)	2.7%	3.2%
EPRA topped-up initial yield (C/B)	3.3%	3.4%

1. Annualised passing rental income as calculated by the Group's external valuers including joint ventures at share.

See note 9 for further detail on EPRA measures which are Alternative Performance Metrics.

11 Investment in joint ventures

The Group has the following investments in joint ventures:

	Equity £m	Balances with partners £m	2025 Total £m	2024 Total £m
At 1 April	277.8	213.5	491.3	538.8
Movement on joint venture balances	-	(5.9)	(5.9)	(0.9)
Additions	-	-	-	0.1
Share of profit of joint ventures	7.3	-	7.3	9.8
Share of revaluation surplus/(deficit) of joint ventures	14.5	-	14.5	(56.5)
Share of results of joint ventures	21.8	-	21.8	(46.7)
Distributions	-	-	-	-
At 31 March	299.6	207.6	507.2	491.3

All of the Group's joint ventures operate solely in the United Kingdom and comprise the following:

	Country of registration	2025 ownership	2024 ownership
The GHS Limited Partnership	Jersey	50%	50%
The Great Ropemaker Partnership	United Kingdom	50%	50%
The Great Victoria Partnerships	United Kingdom	50%	50%

The Group's share in the assets and liabilities, revenues and expenses for the joint ventures is set out below:

	The GHS Limited Partnership £m	The Great Ropemaker Partnership £m	The Great Victoria Partnerships £m		2025 Total £m	2025 At share £m	2024 At share £m
Balance sheets
Investment property	670.6	259.3		82.0	1,011.9	505.9	481.2
Current assets	0.3	3.8		0.2	4.3	2.1	2.7
Cash and cash equivalents	14.6	3.7		13.4	31.7	15.9	25.7
Balances from partners	(207.7)	(134.5)		(73.1)	(415.3)	(207.6)	(213.5)
Current liabilities	(11.7)	(11.4)		(0.1)	(23.2)	(11.6)	(13.2)
Obligations under head leases	-	(10.2)		-	(10.2)	(5.1)	(5.1)
Net assets	466.1	110.7		22.4	599.2	299.6	277.8

	The GHS Limited Partnership £m	The Great Ropemaker Partnership £m	The Great Victoria Partnerships £m		2025 Total £m	2025 At share £m	2024 At share £m
Income statements
Revenue	24.5	17.6		4.6	46.7	23.4	26.5

Net rental income	19.6	10.2		1.9	31.7	15.9	19.4
Property and administration costs	(0.5)	(4.5)		(1.8)	(6.8)	(3.4)	(3.6)
Net finance costs	(8.2)	(2.4)		0.3	(10.3)	(5.2)	(6.0)
Share of profit from joint ventures	10.9	3.3		0.4	14.6	7.3	9.8
Revaluation of investment property	32.0	(6.3)		3.3	29.0	14.5	(56.5)
Results of joint ventures	42.9	(3.0)		3.7	43.6	21.8	(46.7)

At 31 March 2025 and 31 March 2024, the joint ventures had no external debt facilities.

Transactions during the year between the Group and its joint ventures, which are related parties, are disclosed below:

	2025 £m	2024 £m
Movement on joint venture balances during the year	5.9	0.9
Balances receivable at the year end from joint ventures	(207.6)	(213.5)
Interest on balances with partners (see note 6)	5.7	5.8
Distributions	-	-
Joint venture fees paid (see note 3)	2.5	1.7

The joint venture balances are repayable on demand and bear interest as follows: the GHS Limited Partnership at 4.0% and the Great Ropemaker Partnership at 2.0%. In measuring expected credit losses of the balances receivable at the year end from joint ventures under IFRS 9, the ability of each joint venture to repay the loan at the reporting date if demanded by the Group is assumed to be through the sale of the investment properties held by the joint venture. Investment properties are held at fair value at each reporting date as described in note 10. Therefore, the net asset value of the joint venture is considered to be a reasonable approximation of the available assets that could be realised to recover the loan balance and the requirement to recognise expected credit losses.

The investment properties include £5.1 million (2024: £5.1 million) in respect of the present value of future ground rents; net of these amounts, the market value of our share of the total joint venture properties is £500.8 million. The Group earns fee income from its joint ventures for the provision of management services. All of the above transactions are made on terms equivalent to those that prevail in arm's length transactions. See notes 10, 14 and 17 for more information on the valuation of investment properties and expected credit losses in joint ventures.

At 31 March 2025, the Group had £nil contingent liabilities arising in its joint ventures (2024: £nil). At 31 March 2025, the Group had capital commitments in respect of its joint ventures of £nil (2024: £nil).

12 Property, plant and equipment

	Right of use asset for occupational leases £m	Leasehold improvements £m	Fixtures and fittings/other £m	Total £m
Cost
At 1 April 2023	4.9	5.6	2.1	12.6
Costs capitalised	-	-	0.1	0.1
At 31 March 2024	4.9	5.6	2.2	12.7
Costs capitalised	-	0.2	0.4	0.6
At 31 March 2025	4.9	5.8	2.6	13.3
Depreciation
At 1 April 2024	4.1	4.5	2.1	10.7
Charge for the year	0.8	0.7	0.2	1.7
At 31 March 2025	4.9	5.2	2.3	12.4
Carrying amount at 31 March 2024	0.8	1.1	0.1	2.0
Carrying amount at 31 March 2025	-	0.6	0.3	0.9

13 Other investments

	2025 £m	2024 £m
At 1 April	2.4	1.8
Acquisitions	0.8	0.8
Deficit on revaluation	(0.4)	(0.2)
At 31 March	2.8	2.4

In January 2020, the Group entered into a commitment of up to £5.0 million to invest in the Pi Labs European PropTech venture capital fund. At 31 March 2025, the Group had made net investments of £3.3 million. Launched in 2014, Pi Labs is Europe's longest standing PropTech VC, and this third fund has a primary focus to invest in early stage PropTech start-ups across Europe and the UK that use technology solutions to enhance any stage of the real estate value chain. The valuation of the fund is based on the net assets of its investments, therefore, given these are not readily traded, we have classified the valuation of the investments as Level 3 as defined by IFRS 13. Key areas of focus for the fund include sustainability, future of work, future of retail, commercial real estate technologies, construction technology and smart cities.

14 Trade and other receivables

	2025 £m	2024 £m
Trade receivables	3.8	6.7
Expected credit loss allowance	(0.1)	(0.3)
	3.7	6.4
Prepayments	0.1	0.2
Other taxes	8.4	5.9
Other receivables	8.5	12.4
	20.7	24.9

Trade receivables consist of rent and service charge monies, which are typically due on the quarter day with no credit period. Interest is charged on trade receivables in accordance with the terms of the customer's lease. Trade receivables are provided for based on the expected credit loss, which uses a lifetime expected loss allowance for all trade receivables based on an assessment of each individual customer's circumstances. This assessment reviews the outstanding balances of each individual customer and makes an assessment of the likelihood of recovery, based on an evaluation of their financial situation. Where the expected credit loss relates to revenue already recognised, this has been recognised immediately in the income statement.

Of the gross trade receivables of £3.8 million, £1.6 million (2024: £4.4 million) was past due, of which £1.2 million was over 30 days (2024: £1.2 million).

	2025 £m	2024 £m
Movements in expected credit loss allowance
Balance at the beginning of the year	(0.3)	(1.7)
Expected credit loss allowance during the year	(0.2)	(0.3)
Amounts written-off as uncollectable	0.4	1.7
	(0.1)	(0.3)

The expected credit loss for the year represents 3% (2024: 5%) of the net trade receivables balance at the balance sheet date.

15 Trade and other payables

	2025 £m	2024 £m
Rents received in advance	15.9	16.4
Accrued capital expenditure	26.0	18.1
Payables in respect of customer rent deposits	18.7	17.0
Other accruals	20.7	23.3
Other payables	4.2	1.4
	85.5	76.2

The Directors consider that the carrying amount of trade payables approximates their fair value.

16 Interest-bearing loans and borrowings

	2025 £m	2024 £m
Current liabilities at amortised cost
Unsecured
£175.0 million 2.15% private placement notes 2024	-	175.0

Non-current liabilities at amortised cost
Secured
£21.9 million 5⁵⁄₈% debenture stock 2029	21.9	22.0
Unsecured
£450.0 million revolving credit facility	149.4	46.1
£150.0 million revolving credit facility	106.4	-
£75.0 million term loan 2026 (2024: £250.0 million)	74.7	248.3
£250.0 million 5.375% sustainable sterling bond 2031	246.5	-
£40.0 million 2.70% private placement notes 2028	40.0	39.9
£30.0 million 2.79% private placement notes 2030	29.9	29.9
£30.0 million 2.93% private placement notes 2033	29.9	29.9
£25.0 million 2.75% private placement notes 2032	24.9	24.9
£125.0 million 2.77% private placement notes 2035	124.4	124.4
Non-current interest-bearing loans and borrowings	848.0	565.4
Total interest-bearing loans and borrowings	848.0	740.4

The Group's £450 million unsecured revolving credit facility (RCF) is unsecured, attracts a floating rate based on a headline margin of 90.0 basis points over SONIA (plus or minus 2.5 basis points subject to a number of ESG-linked targets) and matures in January 2027. In October 2024, the Group signed a new £150 million ESG-linked RCF at a headline margin of 90 basis points over SONIA. The facility has an initial three-year term which may be extended to a maximum of five years at GPE's request, subject to bank consent. At 31 March 2025, the Group had £343.0 million (2024: £603.0 million) of undrawn committed credit facilities.

The Group's £250 million unsecured term loan has a headline margin of 175 basis points over SONIA. The loan has an initial three-year term which may be extended to a maximum of five years at GPE's request, subject to bank consent. The Group also has a £200 million interest rate cap to protect against any further increases in rates whilst preserving the benefit of any reductions. The interest rate cap expires in October 2025. In November 2024, £175 million of the Group's £250 million term loan was repaid.

In September 2024, the Group issued a sterling denominated senior unsecured sustainable £250 million bond. The bond has a term of seven years, bears interest at a rate of 5.375% and is rated Baa2 by Moody's Investor Services Ltd.

The Group's £175 million 2.15% private placement notes 2024 were repaid on 22 May 2024.

The Group had a £200 million loan facility at a headline margin of 75 basis points over SONIA, with the margin stepping up by 0.25% after six months, a further 0.25% after 12 months and a final step-up of 0.50% at 18 months. The loan was undrawn and cancelled on 30 May 2024.

At 31 March 2025, the Group has committed cash and undrawn credit facilities of £361.2 million (31 March 2024: £633.4 million). At 31 March 2025, properties with a carrying value of £114.8 million (31 March 2024: £107.0 million) were secured under the Group's debenture stock.

At 31 March 2025, the nominal value of the Group's interest-bearing loans and borrowing was £853.9 million (2024: £743.9 million) and the Group had £343.0 million (2024: £603.0 million) of undrawn credit facilities.

17 Financial instruments

Categories of financial instrument	Carrying amount 2025 £m	Amounts recognised in income statement 2025 £m	Gain/(loss) to equity 2025 £m	Carrying amount 2024 £m	Amounts recognised in income statement 2024 £m	Gain/(loss) to equity 2024 £m

Other investments	2.8	(0.4)	-	2.4	(0.2)	-
Interest rate cap	-	(0.4)	-	0.4	(1.7)	-
Assets at fair value	2.8	(0.8)	-	2.8	(1.9)	-

Balances with joint ventures	207.6	5.7	-	213.5	5.8	-
Trade receivables	20.6	(0.2)	-	24.7	(0.1)	-
Cash and cash equivalents	36.9	1.5	-	22.9	0.3	-
Assets at amortised cost	265.1	7.0	-	261.1	6.0	-

Trade and other payables	(4.2)	-	-	(1.4)	-	-
Payables in respect of customer rent deposits	(18.7)	-	-	(17.0)	-	-
Interest-bearing loans and borrowings	(848.0)	(9.6)	-	(740.4)	(15.2)	-
Obligations under occupational leases	-	-	-	(1.0)	-	-
Obligations under finance leases	(87.0)	(3.1)	-	(74.1)	(2.4)	-
Liabilities at amortised cost	(957.9)	(12.7)	-	(833.9)	(17.6)	-
Total financial instruments	(690.0)	(6.5)	-	(570.0)	(13.5)	-

Financial risk management objectives

Capital risk

The Group manages its capital to ensure that entities in the Group will be able to operate on a going concern basis, and as such it aims to maintain an appropriate mix of debt and equity financing. The current capital structure of the Group consists of a mix of equity and debt. Equity comprises issued share capital, reserves and retained earnings as disclosed in the Group statement of changes in equity. Debt comprises long-term debenture stock, private placement notes and drawings against committed revolving credit facilities from banks. The Group aims to maintain a loan-to-property value of between 10-35% (see note 9). The Group operates solely in the United Kingdom, and its operating profits and net assets are sterling denominated. As a result, the Group's policy is to have no unhedged assets or liabilities denominated in foreign currencies.

Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. The Group has a policy of reviewing the financial information of prospective customers and only dealing with those that are creditworthy and obtaining sufficient rental cash deposits or third-party guarantees to mitigate financial loss from defaults. The concentration of credit risk is limited due to the large and diverse customer base, with no one customer providing more than 10% of the Group's rental income. Details of the Group's receivables, and the associated expected credit loss, are summarised in notes 11 and 14 of the financial statements. The Directors believe that there is no further expected credit loss required in excess of that provided. The carrying amount of financial assets recorded in the financial statements, which is net of impairment losses, represents the Group's maximum exposure to credit risk. The Group's cash deposits are placed with a diversified range of investment grade banks, and strict counterparty limits ensure the Group's exposure to bank failure is minimised.

Liquidity risk

The Group operates a framework for the management of its short-, medium- and long-term funding requirements. Cash flow and funding needs are regularly monitored to ensure sufficient undrawn facilities are in place. The Group's funding sources are diversified across a range of bank and bond markets and strict counterparty limits are operated on deposits.

The Group meets its day-to-day working capital requirements through the utilisation of its two revolving credit facilities. The availability of these facilities depends on the Group complying with a number of key financial covenants; these covenants and the Group's compliance with them are set out in the table below:

Key covenants	Covenant	March 2025 actuals
Group
Net gearing (see note 9)	<125%	41.9%
Inner borrowing (unencumbered asset value/unsecured borrowings)	>1.66x	2.71x
Interest cover	>1.35x	10.9x

The interest rate payable on the Group's revolving credit facilities can vary dependent on its performance against a number of ESG covenants.

The Group has undrawn credit facilities of £343.0 million and has substantial headroom above all of its key covenants. As a result, the Directors consider the Group to have adequate liquidity to be able to fund the ongoing operations of the business. Under the requirements of IAS 1, given this substantial headroom on all its key covenants, the Directors consider none of the non-current liabilities are at risk of being repayable in the next 12 months from the result of a covenant breach.

The following tables detail the Group's remaining contractual maturity on its financial instruments and have been drawn up based on the undiscounted cash flows of financial liabilities, including associated interest payments, based on the earliest date on which the Group is required to pay, and conditions existing at the balance sheet date:

At 31 March 2025	Carrying amount £m	Contractual cash flows £m	Less than one year £m	One to two years £m	Two to five years £m	More than five years £m
Non-derivative financial liabilities
£21.9 million 55⁄8% debenture stock 2029	21.9	26.6	1.2	1.2	24.2	-
£450.0 million revolving credit facility	149.4	166.5	9.0	157.5	-	-
£150.0 million revolving credit facility	106.4	122.2	5.9	5.9	110.4	-
£75.0 million term loan 2026	74.7	82.0	4.7	77.3	-	-
£250.0 million 5.375% sterling bond 2031	246.5	323.7	13.4	13.4	40.3	256.6
Private placement notes	249.1	307.2	7.0	7.0	58.9	234.3
Derivative financial instruments
Interest rate cap	-	-	-	-	-	-
	848.0	1,028.2	41.2	262.3	233.8	490.9

At 31 March 2024	Carrying amount £m	Contractual cash flows £m	Less than one year £m	One to two years £m	Two to five years £m	More than five years £m
Non-derivative financial liabilities
£21.9 million 55⁄8% debenture stock 2029	22.0	27.8	1.2	1.2	25.4	-
£450.0 million revolving credit facility	46.1	58.9	4.2	4.2	50.5	-
£250.0 million term loan 2026	248.3	291.3	17.2	17.2	256.9	-
Private placement notes	424.0	489.6	182.5	7.0	60.0	240.1
Derivative financial instruments
Interest rate cap	(0.4)	(0.3)	(0.2)	(0.1)	-	-
	740.0	867.3	204.9	29.5	392.8	240.1

The maturity of lease obligations is set out in notes 18 and 19.

Interest rate risk

Interest rate risk arises from the Group's use of interest-bearing financial instruments. It is the risk that future cash flows arising from a financial instrument will fluctuate due to changes in interest rates. It is the Group's policy to reduce interest rate risk in respect of the cash flows arising from its debt finance, either through the use of fixed-rate debt or through the use of interest rate derivatives such as swaps, caps and floors. It is the Group's usual policy to maintain the proportion of floating interest rate exposure to between 20-40% of forecast total debt. However, this target is flexible, and may not be adhered to at all times depending on, for example, the Group's view of future interest rate movements.

Interest rate caps

Interest rate caps protect the Group from rises in short-term interest rates by making a payment to the Group when the underlying interest rate exceeds a specified rate (the 'cap rate') on a notional value. If the underlying rate exceeds the cap rate, the payment is based upon the difference between the two rates, ensuring the Group only pays the maximum of the cap rate. At 31 March 2025, the Group's only interest rate derivative was a £200 million interest rate cap.

Interest rate sensitivity

The sensitivity analysis below has been determined based on the exposure to interest rates for financial instruments at the balance sheet date, and represents management's assessment of possible changes in interest rates based on historical trends. For the floating rate liabilities, the analysis is prepared assuming the amount of the liability at 31 March 2025 was outstanding for the whole year:

	Impact on profit/(loss)		Impact on equity
	2025 £m	2024 £m	2025 £m	2024 £m
Increase of 50 basis points	(1.7)	(0.5)	(1.7)	(0.5)
Increase of 25 basis points	(0.8)	(0.2)	(0.8)	(0.2)
Decrease of 25 basis points	0.8	0.7	0.8	0.7
Decrease of 50 basis points	1.7	1.5	1.7	1.5

Fair value of interest-bearing loans and borrowings

	Book value 2025 £m	Fair value 2025 £m	Book value 2024 £m	Fair value 2024 £m
Items carried at fair value
Interest rate cap (asset)	-	-	(0.4)	(0.4)
Items not carried at fair value
£21.9 million 55⁄8% debenture stock 2029	21.9	21.8	22.0	22.0
£450.0 million revolving credit facility	149.4	149.4	46.1	46.1
£150.0 million revolving credit facility	106.4	106.4	-	-
£75.0 million term loan 2026 (2024: £250.0 million)	74.7	74.7	248.3	248.3
£250.0 million 5.375% sustainable sterling bond 2031	246.5	244.5	-	-
Private placement notes	249.1	204.7	424.0	373.3
	848.0	801.5	740.0	689.3

The fair values of the Group's private placement notes were determined by comparing the discounted future cash flows using the contracted yields with those of the reference gilts plus the implied margins, representing Level 2 fair value measurements as defined by IFRS 13 - Fair Value Measurement. The fair values of the Group's outstanding interest rate cap has been estimated by calculating the present value of future cash flows, using appropriate market discount rates, representing Level 2 fair value measurements as defined by IFRS 13. The fair values of the Group's cash and cash equivalents and trade payables and receivables are not materially different from those at which they are carried in the financial statements.

The following table details the principal amounts and remaining terms of interest rate derivatives outstanding:

	Average contracted fixed interest rate		Notional principal amount		Fair value asset
	2025 %	2024 %	2025 £m	2024 £m	2025 £m	2024 £m
Cash flow hedges
Interest rate cap	5.094%	5.094%	200.0	200.0	-	0.4

The Group entered a £200 million interest rate cap (at a cost of £2.1 million) effective from 9 October 2023 and expires in September 2025.

18 Head lease obligations

Head lease obligations in respect of the Group's leasehold properties are payable as follows:

	Minimum lease payments 2025 £m	Interest 2025 £m	Principal payments 2025 £m	Minimum lease payments 2024 £m	Interest 2024 £m	Principal payments 2024 £m
Less than one year	3.5	(3.5)	-	2.9	(2.9)	-
Between one and five years	14.2	(14.0)	0.2	11.5	(11.3)	0.2
More than five years	427.4	(340.6)	86.8	358.0	(284.1)	73.9
	445.1	(358.1)	87.0	372.4	(298.3)	74.1

19 Occupational lease obligations

Obligations in respect of the Group's occupational leases for its head office are payable as follows:

	Minimum lease payments 2025 £m	Interest 2025 £m	Principal payments 2025 £m	Minimum lease payments 2024 £m	Interest 2024 £m	Principal payments 2024 £m
Less than one year	-	-	-	1.0	-	1.0
Between one and five years	-	-	-	-	-	-
	-	-	-	1.0	-	1.0

20 Share capital

	2025 Number	2025 £m	2024 Number	2024 £m
Allotted, called up and fully paid ordinary shares of 155⁄19 pence
At 1 April	253,867,911	38.7	253,867,911	38.7
Issue of ordinary shares - rights issue	152,320,747	23.3	-	-
31 March	406,188,658	62.0	253,867,911	38.7

In June 2024, the Company raised gross proceeds of £350.3 million (£335.6 million net proceeds) by issuing 152,320,747 new ordinary shares through a three for five rights issue.

At 31 March 2025, the Company had 406,188,658 ordinary shares with a nominal value of 155⁄19 pence each.

21 Investment in own shares

	2025 £m	2024 £m
At 1 April	(5.6)	(2.8)
Employee share-based incentive charges	(4.2)	(4.0)
Shares purchased in year	5.7	-
Transfer to retained earnings	2.3	1.2
At 31 March	(1.8)	(5.6)

The investment in the Company's own shares is held at cost and comprises 2,893,542 shares (2024: 887,159 shares) held by the Great Portland Estates plc LTIP Employee Share Trust, which will vest for certain senior employees of the Group if performance conditions are met. During the year, 25,912 shares (2024: no shares) vested to the Directors in respect of the 2021 annual bonus share plan and 2,032,295 additional shares were acquired by the Trust (2024: no shares). The fair value of shares awarded and outstanding at 31 March 2025 was £12.0 million (2024: £9.8 million).

Details of the outstanding Long Term Incentive Plan and Restricted Share Plans are set out below:

Date of Grant/Fair value (pence)	At 1 April 2024 No. of shares	Granted No. of shares	Rights issue No. of shares	Vested No. of shares	Lapsed/ forfeit No. of shares	At 31 March 2025 No. of shares	Vesting dates
Long Term Incentive Plan
7 June 2021/733p	1,339,435	-	-	-	(1,339,435)	-	6 June 2024
27 May 2022/645p	1,799,690	-	370,832	-	(11,769)	2,158,753	26 May 2025

Restricted Share Plan
7 July 2023/422p	1,101,310	-	226,924	-	(14,290)	1,313,944	6 July 2026
24 November 2023/408p	10,283	-	2,118	-	-	12,401	23 Nov 2026
20 June 2024/341p	-	1,403,461	-	-	(19,786)	1,383,675	19 June 2027
	4,250,718	1,403,461	599,874	-	(1,385,280)	4,868,773

22 Cash and cash equivalents

	2025 £m	2024 £m
Cash held at bank (unrestricted)	18.2	5.9
Amounts held in respect of customer rent deposits (restricted)	18.7	17.0
	36.9	22.9

Amounts held in respect of customer rent deposits are subject to restrictions as set out in the customers' lease agreement and therefore not available for general use by the Group.

23 Notes to the Group statement of cash flows

Reconciliation of financing liabilities

	1 April 2024 £m	New obligations £m	Inflows/ (outflows) £m	Other non-cash movements £m	31 March 2025 £m
Long-term interest-bearing loans and borrowings	565.4	455.5	(175.0)	2.1	848.0
Short-term interest-bearing loans and borrowings	175.0	-	(175.0)	-	-
Obligations under leases	75.1	12.9	(3.1)	2.1	87.0
	815.5	468.4	(353.1)	4.2	935.0

	1 April 2023 £m	New obligations £m	Inflows/ (outflows) £m	Other non-cash movements £m	31 March 2024 £m
Long-term interest-bearing loans and borrowings	458.5	248.0	33.5	(174.6)	565.4
Short-term interest-bearing loans and borrowings	-	-	-	175.0	175.0
Obligations under leases	68.7	7.4	(3.3)	2.3	75.1
	527.2	255.4	30.2	2.7	815.5

Adjustment for non-cash items

Adjustments for non-cash items used in the reconciliation of cash generated from/(used in) operations in the Group statement of cash flows' is disclosed below:

	2025 £m	2024 £m
(Surplus)/deficit from investment property	(83.2)	267.3
Deficit on revaluation of other investments	0.4	0.2
Employee share-based incentive charge	4.2	4.0
Spreading of lease incentives	1.0	(5.7)
Share of results of joint ventures	(21.8)	46.7
Depreciation	1.7	1.6
Other	(0.7)	(0.7)
Adjustments for non-cash items	(98.4)	313.4

24 Dividends

	2025 £m	2024 £m
Dividends paid
Interim dividend for the year ended 31 March 2025 of 2.9 pence per share	11.8	-
Final dividend for the year ended 31 March 2024 of 7.9 pence per share	20.0	-
Interim dividend for the year ended 31 March 2024 of 4.7 pence per share	-	11.9
Final dividend for the year ended 31 March 2023 of 7.9 pence per share	-	20.0
	31.8	31.9

A final dividend of 5.0 pence per share was approved by the Board on 20 May 2025 and, subject to shareholder approval, will be paid on 7 July 2025 to shareholders on the register on 30 May 2025. The dividend is not recognised as a liability at 31 March 2025. The 2024 final dividend and the 2024 interim dividend are included within the Group statement of changes in equity.

25 Lease receivables

Future aggregate minimum rentals receivable under non-cancellable leases are:

	2025 £m	2024 £m
The Group as a lessor
Less than one year	76.6	66.0
Between two and five years	147.1	141.0
More than five years	65.8	62.9
	289.5	269.9

The Group leases its investment properties under operating leases. The weighted average length of lease at 31 March 2025 was 3.0 years (2024: 3.4 years). All investment properties, except those under development, generated rental income, and £nil contingent rents were recognised in the year (2024: £nil).

26 Employee benefits

The Group operates a UK-funded approved defined contribution plan. The Group's contribution for the year was £2.0 million (2024: £1.8 million). The Group also contributes to a defined benefit final salary pension plan (the Plan), the assets of which are held and managed by trustees separately from the assets of the Group. The Plan has been closed to new entrants since April 2002, and will close to further accrual from 1 April 2025. The duration of the Plan is 14 years. The most recent actuarial valuation of the Plan was conducted at 1 April 2023 by a qualified independent actuary using the projected unit method. The Plan was valued using the following key actuarial assumptions:

	2025 %	2024 %
Discount rate	5.80	4.90
Expected rate of salary increases	4.10	4.10
RPI inflation	3.10	3.10
Rate of future pension increases	2.90	2.90

Life expectancy assumptions at age 65:

	2025 Years	2024 Years
Retiring today age 65 - male: female	23:25	23:25
Retiring in 25 years (age 40 today) - male:female	25:27	25:27

Changes in the present value of the pension obligation are as follows:

	2025 £m	2024 £m
Defined benefit obligation at 1 April	25.9	26.9
Service cost	0.2	0.2
Past service cost	(0.4)	-
Interest cost	1.2	1.2
Effect of changes in demographic assumptions	0.5	(1.9)
Effect of changes in financial assumptions	(2.7)	(0.5)
Effect of experience adjustments	-	1.3
Benefits paid	(1.1)	(1.3)
Present value of defined benefit obligation at 31 March	23.6	25.9

Changes to the fair value of the Plan assets are as follows:

	2025 £m	2024 £m
Fair value of the Plan assets at 1 April	30.8	31.0
Interest income	1.5	1.5
Actuarial loss	(3.1)	(1.0)
Employer contributions	0.3	0.6
Benefits paid	(1.1)	(1.3)
Fair value of the Plan assets at 31 March	28.4	30.8

Net pension asset	4.8	4.9

The loss recognised immediately in the Group statement of comprehensive income was £0.8 million (2024: £0.1 million gain).

The amount recognised in the balance sheet in respect of the Plan is as follows:

	2025 £m	2024 £m
Present value of unfunded obligations	(23.6)	(25.9)
Fair value of the Plan assets	28.4	30.8
Pension asset	4.8	4.9

Amounts recognised as administration expenses in the income statement are as follows:

	2025 £m	2024 £m
Service cost	(0.2)	(0.2)
Past service cost	0.4	-
Net interest income	0.3	0.3
	0.5	0.1

All equity and debt instruments have quoted prices in active markets. The fair value of the Plan assets at the balance sheet date is analysed as follows:

	2025 £m	2024 £m
Cash	0.1	0.1
Equities	1.2	1.6
Bonds	25.8	27.6
Derivatives	1.3	1.5
	28.4	30.8

Other than market and demographic risks, which are common to all retirement benefit schemes, there are no specific risks in the relevant benefit schemes which the Group considers to be significant or unusual. Details on two of the more specific risks are below:

Changes in bond yields

Falling bond yields tend to increase the funding and accounting liabilities. However, the investment in corporate and government bonds offers a degree of matching, i.e. the movement in assets arising from changes in bond yields partially matches the movement in the funding or accounting liabilities. In this way, the exposure to movements in bond yields is reduced.

Life expectancy

The majority of the obligations are to provide a pension for the life of the member on retirement, so increases in life expectancy will result in an increase in the liabilities. The inflation-linked nature of the majority of benefit payments increases the sensitivity of the liabilities to changes in life expectancy.

The effect on the defined benefit obligation of changing the key assumptions, calculated using approximate methods based on historical trends, is set out below:

	2025 £m	2024 £m
Discount rate -0.50%	25.2	26.9
Discount rate +0.50%	22.3	25.1
RPI inflation -0.25%	23.4	25.6
RPI inflation +0.25%	24.0	26.3
Post-retirement mortality assumption - one year age rating	24.6	26.9

Given the Plan surplus, the Group has agreed to pause contributions to the Plan. Accordingly, the Group expects to contribute £nil (2024: £nil) to the Plan in the year ending 31 March 2026. The expected total benefit payments for the year ending 31 March 2026 is £1.0 million, rising to around £1.2 million per annum over the next five years. A total of around £6.9 million is expected to be paid over the subsequent five-year period.

27 Reserves

The following describes the nature and purpose of each reserve within equity:

Share capital: The nominal value of the Company's issued share capital, comprising 155⁄19 pence ordinary shares.

Share premium: Amount subscribed for share capital in excess of nominal value, less directly attributable issue costs.

Capital redemption reserve: Amount equivalent to the nominal value of the Company's own shares acquired as a result of share buyback programmes.

Retained earnings: Cumulative net gains and losses recognised in the Group income statement together with other items such as dividends.

Investment in own shares: Amount paid to acquire the Company's own shares for its Employee Long Term Incentive Plan less accounting charges.

Glossary

Building Research Establishment Environmental Assessment Methodology (BREEAM)

Building Research Establishment method of assessing, rating and certifying the sustainability of buildings.

Cash EPS

EPRA EPS adjusted for certain non-cash items (including our share of joint ventures): lease incentives, capitalised interest and charges for share-based payments.

Core West End

Areas of London with W1 and SW1 postcodes.

Development profit on cost

The value of the development at completion, less the value of the land at the point of development commencement and costs to construct (including finance charges, letting fees, void costs and marketing expenses).

Development profit on cost %

The development profit on cost divided by the land value at the point of development commencement together with the costs to construct.

Earnings per share (EPS)

Profit after tax divided by the weighted average number of ordinary shares in issue.

EPRA metrics

Standard calculation methods for adjusted EPS and NAV and other operating metrics as set out by the European Public Real Estate Association (EPRA) in their Best Practice and Policy Recommendations.

EPRA Net Disposal Value (NDV)

Represents the shareholders' value under a disposal scenario, where deferred tax, financial instruments and certain other adjustments are calculated to the full extent of their liability, net of any resulting tax. Diluted net assets per share adjusted to remove the impact of goodwill arising as a result of deferred tax and fixed interest rate debt.

EPRA Net Reinstatement Value (NRV)

Represents the value of net assets on a long-term basis. Assets and liabilities that are not expected to crystallise in normal circumstances, such as the fair value movements on financial derivatives, real estate transfer taxes and deferred taxes on property valuation surpluses, are therefore excluded.

EPRA Net Tangible Assets (NTA)

Assumes that entities buy and sell assets, thereby crystallising certain levels of unavoidable deferred tax. Diluted net assets per share adjusted to remove the cumulative fair value movements on interest-rate swaps and similar instruments, the carrying value of goodwill arising as a result of deferred tax and other intangible assets.

Estimated rental value (ERV)

The market rental value of lettable space as estimated by the Group's valuers at each balance sheet date.

Fair value - investment property

The amount as estimated by the Group's valuers for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm's length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion. In line with market practice, values are stated net of purchasers' costs.

Ready to fit

For businesses typically taking larger spaces on longer leases who want to fit out the space themselves.

Fitted spaces

Where businesses can move into fully furnished, well-designed workspaces, with their own front door, furniture, meeting rooms, kitchen and branding.

Fully Managed

Fitted space where GPE handles all day-to-day services and running of the workplace in one monthly bill.

Flex space partnerships

Revenue share agreements with flexible space operators; these are typically structured via lease arrangements with the revenue share recognised within rental income.

Full repairing and Insuring (FRI) lease

In an FRI lease, the customer is responsible for managing the space they occupy, including all costs associated with repairing and maintaining the property, as well as obtaining insurance coverage.

IFRS

United Kingdom adopted international accounting standards.

Internal rate of return (IRR)

The rate of return that, if used as a discount rate and applied to the projected cash flows, would result in a net present value of zero.

Like-for-like (Lfl)

The element of the portfolio that has been held for the whole of the period of account.

MSCI

Morgan Stanley Capital International (MSCI) is a company that produces an independent benchmark of property returns.

EPRA Loan-to-Value (LTV)

The nominal value of total bank loans, private placement notes, debenture stock and any net liabilities/assets, net of cash (including our share of joint ventures balances), expressed as a percentage of the market value of the property portfolio (including our share of joint ventures).

MSCI central London

An index, compiled by MSCI, of the central and inner London properties in their March annual valued universes.

Net assets per share or net asset value (NAV)

Equity shareholders' funds divided by the number of ordinary shares at the balance sheet date.

Net debt

The book value of the Group's bank and loan facilities, private placement notes and debenture loans plus the nominal value of the convertible bond less cash and cash equivalents.

Net gearing

Total Group borrowings at nominal value plus obligations under occupational leases less short-term deposits and cash as a percentage of equity shareholders' funds adjusted for value of the Group's pension scheme, calculated in accordance with our bank covenants.

Net initial yield

Annual net rents on investment properties as a percentage of the investment property valuation having added notional purchasers' costs.

Net rental income

Gross rental income adjusted for the spreading of lease incentives less expected credit losses for rental income and ground rents.

Non-PIDs

Dividends from profits of the Group's taxable residual business.

Property costs

Service charge and Fully Managed services income less service charge expenses, Fully Managed services cost, other property expenses and expected credit losses for service charges.

Property Income Distributions (PIDs)

Dividends from profits of the Group's tax-exempt property rental business.

PMI

Purchasing Managers Index.

REIT

UK Real Estate Investment Trust.

Rent roll

The annual contracted rental income.

Reversionary potential

The percentage by which ERV exceeds rent roll on let space.

Topped-up initial yield

Annual net rents on investment properties as a percentage of the investment property valuation having added notional purchasers' costs and contracted uplifts from tenant incentives.

Total potential future growth

Portfolio rent roll plus the ERV of void space, space under refurbishment and the committed development schemes, expressed as a percentage uplift on the rent roll at the end of the period.

Total Accounting Return (TAR)

The growth in EPRA NTA per share, on pro forma basis, plus ordinary dividends paid, expressed as a percentage of EPRA NTA per share at the beginning of the period.

Total Property Return (TPR)

Capital growth in the portfolio plus net rental income derived from holding these properties plus profit on sale of disposals expressed as a percentage return on the period's opening value.

Total Shareholder Return (TSR)

The growth in the ordinary share price as quoted on the London Stock Exchange, plus dividends per share received for the period expressed as a percentage of the share price at the beginning of the period.

True equivalent yield

The constant capitalisation rate which, if applied to all cash flows from an investment property, including current rent, reversions to current market rent and such items as voids and expenditures, equates to the market value having taken into account notional purchasers' costs. Assumes rent is received quarterly in advance.

Ungeared IRR

The ungeared internal rate of return (IRR) is the interest rate at which the net present value of all the cash flows (both positive and negative) from a project or investment equal zero, without the benefit of financing. The internal rate of return is used to evaluate the attractiveness of a project or investment.

EPRA vacancy rate

The element of a property which is unoccupied, expressed as the ERV of the vacant space divided by the ERV of the total portfolio, excluding committed developments.

Weighted Average Unexpired Lease Term (WAULT)

The Weighted Average Unexpired Lease Term expressed in years.

Whole life surplus

The value of the development at completion, less the value of the land at the point of acquisition and costs to construct (including finance charges, letting fees, void costs and marketing expenses), plus any income earned over the period.

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FR EANSEALSSEFA

TIDM	GPE
Share Price	331.00p-2.01%

TIDM	GPE
Share Price	331.00p-2.01%

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Annual Results 2025